AI Summary
Investors are increasingly worried about the rapid borrowing associated with the AI data-center sector, which is seen as a potential source of future market instability. A recent survey indicated that 34% of global fund managers view this capital spending as a significant credit threat, reflecting a notable increase in concern since April.
- Borrowing related to AI data centers is becoming a major concern for Wall Street investors.
- A Bank of America survey found that 34% of global fund managers believe AI hyperscaler capital spending could lead to a systemic credit event, up from 17% in April.
- US private credit remains the primary concern for 42% of respondents, though this figure has decreased from 57% the previous month.
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