S&P Global Ratings has expressed concerns about a potential credit bubble in the U.S., pointing out that tight spreads may be hiding high borrowing costs and strained debt sustainability among corporations.

Investment-grade spreads were at their lowest level since 1998, while high-yield spreads approached levels seen in 2007 before rising to 266 basis points. These developments indicate that the current credit environment may be more precarious than it seems, requiring careful attention from investors and analysts.