Apollo Chief Economist: Massive bond issuance by AI companies may crowd out demand for US Treasury bonds
Odaily reported that Apollo Chief Economist Torsten Slok issued a risk warning, stating that major AI companies are currently borrowing heavily for industry expansion. The total scale of related bond issuances is estimated at 700 billion US dollars. The massive new supply is diverting market capital and producing a noticeable crowding-out effect on US Treasury bonds and other credit varieties.
Torsten Slok indicated that if the scale of debt financing for AI infrastructure continues to expand, the overall capital allocation logic in the bond market will be restructured. This will continuously suppress the demand for US Treasury allocation and will bring medium- and long-term pressure to liquidity in the entire credit market.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Blackstone (BX.US) injects up to $1.5 billion, providing fresh ammunition for Pfizer (PFE.US) in the weight-loss drug race
Pfizer announced on Wednesday that it has reached an agreement with Blackstone to obtain up to $1.5 billions in funding to support the development of its experimental monthly obesity treatment drug.
Bernstein Downgrades Nvidia Rating and Target Price
Google (GOOGL.US) DeepMind launches AlphaGenome 2: Capable of decoding DNA cells with nearly double the mutation identification capacity
Google DeepMind has released its AI model AlphaGenome 2, which is trained on maps of over 100 millions of cells and has nearly double the ability of its predecessor in identifying gene expression variations.
Crypto prices
More
