Artificial intelligence spending and private credit growth are driving record corporate-bond trading volumes. Morgan Stanley and JPMorgan expect high issuance fueled by AI infrastructure investments. Private market borrowing for tech projects like data centers is increasing, leading to more trading in private credit.

Tech and utility companies selling longer-dated bonds for AI investments are boosting trading. Investors are wary of tech exposure and potential AI bubbles. Increased hedging in credit default swaps is expected to drive trading volumes, helping pull spreads tighter as the market evolves.

Trading volume growth is attributed to innovations like portfolio trading and electronic execution. Macro-level strategies are reducing trading costs by two-thirds. As the market shifts towards more advanced trading methods, liquidity access is improving, leading to further growth in active trading.

Automated credit trading is on the rise, but voice trading remains essential for less liquid markets. Market participants expect trading activity to increase in 2026, with credit ETFs and derivatives also seeing more volume. The shift back towards big banks in underwriting and advisory business is reflected in stock prices.

Saks Global Enterprises misses bond payment, CEO steps down. First Brands hires firm to investigate off-balance sheet financing. United Site Services files for bankruptcy to eliminate debt. Summit Properties acquires NYC buildings in bankruptcy. Arini Capital Management fights inclusion of Ardagh bonds in swap auction. Coinstar plans bond repayment after sale. ETF focused on Credit Suisse debt growth.

Read more at Yahoo Finance: AI Debt Spree Is Fueling a Credit Trading Frenzy: Credit Weekly