Shafaqna English– The ongoing surge in corporate bond issuance aimed at financing the artificial intelligence infrastructure buildout is now pushing investor appetite to its breaking point. Some of the largest institutional buyers of debt have begun to caution that the market is exhibiting clear symptoms of oversaturation and strain.
Although fund managers still have confidence in the creditworthiness of industry giants like Amazon and Alphabet, they are progressively insisting on higher interest rates to offset the sheer volume of bonds flooding the market. This trend has sparked concerns that a critical juncture could be reached if AI-related expenditures keep climbing at their current pace.
Source: Reuters