AI Debt Bubble Warnings — Subprime Parallels Emerge
AI-related corporate bond issuance hit a record $419B YTD in 2026 (+90% YoY), with speculative data center debt being repackaged and sold to pension funds in ways analysts are comparing directly to the subprime mortgage bubble.
What we know
The Kobeissi Letter reported US AI-related corporate bond issuance is at $419B in 2026 — up 90% YoY and 437% from 2024 — the highest annual figure on record — an account on X. Ryan Grim flagged reporting that speculative data center debt is being repackaged for pension funds and endowments 'eerily reminiscent of the subprime bubble' — another account on X. Jim Bianco noted Coreweave bonds now imply a 60% probability of default, alongside 20+ year highs in long-end Treasury yields — another account on X. Nikita Bier argued AI's net GDP contribution may be neutral in the short term when accounting for data breaches and spam — another account on X. The FT asked 'Who's paying for the AI build-out? Probably you' — @FT.
By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.