Credit market hit with $200B 'flood' of AI-related issuance (www.ft.com)

I couldn’t load the full article, but the headline indicates that roughly $200 billion of credit market issuance has been labeled or marketed as “AI‑related” — a large wave of corporate bonds, loans and other debt instruments tied to companies’ AI projects, M&A or technology investments. Such a flood typically means banks and issuers are packaging new debt for corporates touting AI initiatives, and that investors are being asked to underwrite a concentrated, theme‑driven slice of the credit market in a short period. For the AI/ML community this matters because it signals a major reallocation of capital toward AI adoption and scale‑up: more funding for hyperscale compute, acquisitions of talent and startups, and large product rollouts. Technically, the surge can tighten spreads and lift valuations in the near term but also raises idiosyncratic and systemic risks — looser covenants, higher leverage to finance long‑lead AI projects, and potential mispricing if ROI on AI is slower than promised. Rating agencies, credit desks and quant investors will watch covenant quality, use‑of‑proceeds disclosures, and cash‑flow models closely; researchers and practitioners should expect faster commercialization pressure, more corporate data access opportunities, but also heightened scrutiny if AI investments underdeliver.