AI Spending Boom Sparks Bond Market Concerns: Credit Weekly

Tech companies' AI investments risk pressuring bond markets. Microsoft, Oracle, and Amazon are investing heavily in AI, with potential debt sales exceeding investor expectations. This could lead to higher bond yields and a decrease in valuations, which are already expensive by historical standards. The AI threat to entire businesses has also sparked concerns, leading to a 4% drop in leveraged loan prices and a 4.6% decline in business development company equity indices.