According to CNBC, AI-related borrowers accounted for almost half of year-to-date gross issuance of nonfinancial U.S. investment-grade debt with maturities beyond 15 years, according to a PIMCO note dated Nov. 10. Lotfi Karoui, PIMCO’s managing director and multi-asset strategist, said investors could diversify with agency mortgage-backed securities (MBS), higher-rated private mortgage bonds and emerging market debt. The note cited a 33-basis-point pickup in agency MBS over U.S. investment-grade corporate spreads as of Nov. 5. Karoui said repricing in AAA-rated non-qualified mortgage bonds had created an opportunity, with wider spreads compensating investors for extension and structural risks. U.S. dollar-denominated emerging market investment-grade “semi-liquid” bond deals offered a median pickup of around 40 basis points this year compared with plain-vanilla emerging market bonds. Goldman Sachs forecasts AI hyperscaler bond issuance at around $250 billion this year, while estimates for issuance across the wider AI ecosystem range from $300 billion to $570 billion.