AI Credit Surge in US Markets Pushes Lenders for Higher Returns Amidst Uncertain Futures

Economic Times Markets · stocks

The U.S. credit market is experiencing a surge in AI-related debt issuance, with low-rated firms raising $88 billion this year, a significant jump from $20 billion in the first 11 months of 2025. Lenders are demanding higher returns due to uncertain future revenues and rapidly changing technology. Investors are scrutinizing financial assumptions, including revenue forecasts and debt servicing capabilities. While overall appetite for lower-quality AI credit remains limited, data centers have been a major source of new supply, supporting the high-yield market.