Global Credit – The AI Issuance Boom | Insight Investment

“The market has so far absorbed the additional supply, but we remain cautious about supply outpacing demand.”

AI-related funding needs are expected to support elevated credit issuance over the next few years. This may create investment opportunities, but also material risks. As investors, this creates both risks and opportunities. As active credit managers, we are currently cautiously positioned. According to S&P Global estimates, the volume of credit issuance funding the build out of AI capabilities could be as high as $400bn in 20261. This figure includes the capex spending needs of hyperscalers such as Alphabet and Amazon but also for software and technology providers such as Nvidia. If realised, this will likely make 2026 the biggest year for investment grade credit issuance¹. The market has so far absorbed the additional supply, but we remain cautious about supply outpacing demand. Each wave of issuance risks pushing spreads wider, and investors are aware that many further waves of funding lie ahead.