AI debt financing nears limits as bond and loan yields soar into double digits

Bloomberg ·
  • Early signs suggest the credit market is approaching the limits of how much more debt it can absorb for AI data centers and chips.
  • Yields on bonds and loans funding the AI infrastructure buildout are soaring into double digits.
  • Bankers are finding it more difficult to offload AI-related risk to insurers and other investors.
  • Elon Musk warned that hundreds of so-called neoclouds risk going under as firms get cut off from fresh financing.
AI debt financing nears limits as bond and loan yields soar into double digits — Heurist Finance