The AI boom is running on credit cards now.
$419 billion in AI-related bonds issued so far this year. That's 90% more than all of last year combined.
This is the part where equity euphoria turns into a debt problem. Companies that can't justify their valuations with cash flow start borrowing to keep the story alive. Investors who missed the equity run pile into bonds for "safer" exposure.
Every bubble follows this script. Dot-com, housing, crypto — they all went from "can't lose" equity stories to leveraged bets before the music stopped.
Debt amplifies everything. On the way up, it looks like genius. On the way down, it's a margin call with no exit.
If you're chasing AI exposure through credit right now, ask yourself: what happens when the narrative cracks and these companies need to actually service this debt?
$419 billion in AI-related bonds issued so far this year. That's 90% more than all of last year combined.
This is the part where equity euphoria turns into a debt problem. Companies that can't justify their valuations with cash flow start borrowing to keep the story alive. Investors who missed the equity run pile into bonds for "safer" exposure.
Every bubble follows this script. Dot-com, housing, crypto — they all went from "can't lose" equity stories to leveraged bets before the music stopped.
Debt amplifies everything. On the way up, it looks like genius. On the way down, it's a margin call with no exit.
If you're chasing AI exposure through credit right now, ask yourself: what happens when the narrative cracks and these companies need to actually service this debt?