Apollo Chief Economist: Massive Bond Issuance by AI Companies May Crowd Out Demand for U.S. Treasury Bonds

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ME News: On June 30 (UTC+8), Apollo Chief Economist Torsten Slok issued a risk warning, saying that major AI companies are taking on substantial new debt for industrial expansion, with the total estimated bond issuance reaching $700,000,000,000. The enormous increase in supply is diverting market funds and is having a clear crowding-out effect on U.S. Treasuries and other credit instruments. Torsten Slok said that if the scale of debt financing for AI infrastructure continues to expand, the bond market’s overall capital allocation logic will be restructured, with ongoing suppression of demand for U.S. Treasuries, while also creating medium- to long-term pressure on liquidity across the entire credit market. (Source: ODAILY)
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