Tech giants are selling billions in bonds to fund AI expansion, raising concerns over the $9 trillion U.S. corporate bond market. Google, Meta, Oracle, and Amazon have collectively sold $90 billion in bonds. Analysts predict $1.5 trillion in AI data center bond sales over five years, potentially 20% of the investment-grade market by 2030.

DoubleLine, with $90 billion in assets, warns of a potential re-levering risk as tech firms increase debt for AI data centers. Rising tech company debt adds unease to financial markets despite the promise of high AI returns. U.S. investment-grade credit spreads have widened, reflecting concerns over the surge of new bond supply.

The U.S. investment-grade bond market is valued at $9.2 trillion. While the market remains strong with a robust economy and accommodative Federal Reserve, caution is advised regarding tech company bond issues flooding the market. Despite not being an immediate risk, investors are wary of adding exposure to their debt.

Read more at Yahoo Finance: DoubleLine wary of AI funding wave that could alter US high-grade debt market