Svmuu News: Apollo Chief Economist Torsten Slok issued a risk warning, noting that major AI companies are currently taking on massive debt to fund industry expansion, with the total volume of related bond issuances estimated to reach $700 billion. This massive new supply is diverting market capital, creating a significant crowding-out effect on U.S. Treasuries and other credit instruments.
Torsten Slok noted that if the scale of debt financing for AI infrastructure continues to expand, the overall logic of capital allocation in the bond market will be restructured, continuously suppressing demand for U.S. Treasury allocations while placing medium- to long-term pressure on liquidity across the entire credit market.