Bond Markets Signal Growing Caution Over AI Infrastructure Debt

Cracks emerge in AI borrowing boom as CoreWeave, Oracle and SoftBank debt worries grow

Another worry: the increasing number of data centres that are being delayed by permitting issues Read more at The Business Times.

Bond Markets Signal Growing Caution Over AI Infrastructure Debt

AI-related debt issuance fell to $23 billion in September from a record $113 billion in June, according to Morgan Stanley data reported by the Financial Times, as Gartner forecasts AI infrastructure spending will far outrun revenue and default-protection costs for CoreWeave and Oracle hit records.

The $10 Trillion AI Buildout Is Starting to Show Cracks in the Financing

CoreWeave's bonds have slipped below 80 cents on the dollar with yields near 15%, while Oracle's $18 billion Project Jupiter loans trade around 90 cents after permit delays and a credit downgrade to BBB-.

America's $10 trillion AI infrastructure boom is starting to show strain

The massive AI infrastructure investment risks financial instability, as it strains resources and relies heavily on external financing and revenue growth.

Breakfast briefing: Investors brace for AI debt reckoning

Global government bond yields fall and flatten; US PPI jumps more than expected as tariff missteps bite; China to cull excess airlines; Aussie jobs shrink; UST 10yr at 5.08%; gold firms slightly and oil rises; NZ$1 = 56.1 USc; TWI-5 = 60