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.