AI Boom Brings Flood of Debt to Ultrasafe Market: Credit Weekly

The great artificial intelligence boom that’s fueling US economic growth now depends heavily on credit markets to finance the investments, and utilities are among the key borrowers.

In the process, they could potentially turn one of the safest parts of the corporate-bond market into a slightly riskier one. Companies will borrow more, boosting the supply of the bonds and potentially weighing on valuations. At the same time, industry profits could face pressure as regulators try to keep a lid on rate increases.