Bloomberg analysis indicates that approximately $1 trillion in corporate bonds are trading at spreads significantly deviating from their credit ratings, with about $580 billion in the US and $400 billion in Europe being non-financial investment-grade securities. The massive bond issuance by mega-cap tech companies vying for AI dominance is a significant contributor to the current misalignment in credit markets, with their share in the US investment-grade bond index having risen to about 5%, double what it was two years ago. For actively managed funds, this presents both risks and opportunities.