A Bank of America survey has identified the "AI bubble" as the primary risk concern among credit investors for the first time. The survey, released on February 24, shows that 23% of investment-grade respondents now view AI overvaluation as their top risk, a significant increase from 9% in December. This concern has overtaken traditional credit and trade-related risks.
Despite the heightened focus on AI risks, the perceived threat of obsolescence for AI-driven companies remains low at 10%. Investors have also increased their bond issuance forecast for major cloud computing firms to $285 billion by 2026. Fund inflows are anticipated to mitigate potential bond market weaknesses, even as AI-related risks persist.
AI Bubble Tops Risk Concerns for Credit Investors: BofA Survey
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