'Follow the leverage' to find risks: CIO says AI stocks still trading at premiums despite correction

Group 1 - The current leverage in the market, particularly in private equity and private credit, is a significant concern for future risks [1] - The software sector has been notably affected by leverage, with 17% of Blue Owl Capital's loan book allocated to this sector, which is trading at a 170% premium to the S&P 500 despite recent corrections [2] - There are growing concerns about the Asian market, particularly in Korea and Taiwan, as it has become nonlinear recently [3] Group 2 - The halt on redemptions at Blue Owl Capital's retail credit fund may signal potential risks, drawing parallels to events leading up to the 2008 financial crisis [4] - Historical parallels are noted with the collapse of New Century Financial in April 2007 and subsequent fund closures by BNP, leading to the failures of Lehman Brothers and Bear Stearns [5] - The ongoing capex boom in AI among US mega-cap tech companies raises questions about the return on investment, with potential implications for the supply chain in Asia if there is a moderation in spending [6]