Depends on what price the banks offload at.

When the debt in 2007 sucked, it crashed the economy. But when the price was good in 2006, everyone celebrated.

Note: prices are getting worse for bonds today but nothing panic worthy yet.

Not sure I agree. The credit default swaps have been extremely expensive lately, meaning that someone is already thinking about an AI bubble popping that will take private credit down which will make banks take a serious hit (11% of their outstanding loans are to linked to AI). On top of that we are in a time where the economy is propped up basically by AI spending and delinquencies on all sort of debt are at historically high rates.

I am panicking a bit TBH