Technology

Will AI-Driven Corporate Debt Strain Credit Markets?

The largest tech companies have issued more than $170 billion in corporate debt this year, which is already more than they offered in 2025. Yet credit spreads remain very low, suggesting investors are not concerned about credit risk. Max Lukianchikov of Goldman Sachs Global Banking & Markets explains that so far, investors have been focused on the overall level of yield. But as AI spending continues to rise, supply could begin to overwhelm demand, he says.

Transcript:

Max Lukianchikov: The demand for AI debt has been staggering. The four biggest tech companies have issued over $170 billion in corporate debt just year-to-date. That's more than they issued in all of last year, and more than four times their pre-AI annual average. And yet, despite the magnitude of that issuance, credit spreads remain at all-time tights, and credit volatility sits near all-time lows. Why?

Because the investors buying these bonds aren't focused on credit risk. They're focused on yield. Government bond yields have risen significantly in recent years. So even though these corporate bonds aren't paying too much more than Treasuries, investors are still looking at an all-in yield of almost 6%. That's very compelling, especially because investors aren't remotely concerned about the health of these companies. The question is whether these credit spreads are sustainable. We've already seen AI spending rise significantly, but expectations are that it's only going to keep increasing.

Can all-in yield keep insulating credit spreads indefinitely? Or is there a tipping point where bond supply overwhelms demand? Because if that happens, and on the

AI buildout itself — could be dramatic.

This video was recorded on June 17, 2026.

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