AI borrowing boom poses stability risks – BIS bulletin
Sustained bond issuance by tech firms could exert pressure on broader long-term yields, study says
The rapid growth in borrowing to finance the artificial intelligence buildout could pose risks to financial stability, as increasingly complex financing arrangements obscure the scale of exposures, according to research published this week by the Bank for International Settlements.
According to the BIS bulletin, in the first nine months of this year the five largest AI hyperscalers issued $222 billion in bonds – a figure equivalent to more than 10% of long-term US Treasury issuance.
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