Investors May Have Bought All the AI Bonds They Can Handle

Investors May Have Bought All the AI Bonds They Can Handle Credit default swaps show growing risk of data-center bonds. This article is for subscribers only. A new anxiety is gripping Wall Street as it bankrolls the vast network of data centers and chips behind the AI boom: Early signs suggest the credit market is approaching the limits of how much more debt it can absorb. One after another, yields are soaring into the double digits on bonds and loans funding the buildout. Bankers are finding it more difficult to offload risk to insurers and other investors. Elon Musk himself warned the other day that hundreds of so-called neoclouds risk going under as firms get cut off from fresh financing.