{
  "id": 10962342,
  "title": "Analysis-AI borrowers face tough sell in risky corners of US credit market",
  "url": "https://urgent.news/2026/09/30/analysis-ai-borrowers-face-tough-sell-in-risky-corners-of-us-credit",
  "topic": "ai",
  "section": "AI",
  "published": "2026-09-30T14:33:03.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/economy-news/analysisai-borrowers-face-tough-sell-in-risky-corners-of-us-credit-market-4925428"
  },
  "original_language": "en",
  "account": "The artificial intelligence boom has permeated the riskiest corners of US credit markets, as leery lenders demand higher compensation for funding borrowers with unproven future earnings. In 2025, AI-related issuance by low-rated firms reached $88 billion, with the majority coming from US issuers. This is a significant jump from the $20 billion observed in the first 11 months of the same year. Investors are scrutinizing these less-established borrowers more closely, questioning their revenue projections, collateral value, and debt support capabilities. Higher-rated AI issuers have been actively borrowing, while a Treasury market sell-off has driven up yields across the board. High yield investors seek assurance of cash flow, timing, and the probability of cash flow, as they do not share in the upside if everything goes well, only facing losses if it doesn't. Despite the increasing issuance, high-yield credit appetite remains subdued, with leveraged finance buyers favoring higher-quality borrowers. Data centers, which typically have predictable revenue streams, tangible assets, and established customer bases, have been crucial in this high-yield market. AI infrastructure supply in high yield reached $40 billion this year, compared to $12 billion for the entire 2025. However, AI infrastructure supply in high yield has reached $40 billion so far this year, compared with $12 billion for the whole of 2025. AI companies are unlikely to push further down the credit spectrum due to higher borrowing costs, with near-investment grade issuers paying 9% to 10% yields, while lower-rated borrowers could face up to 14% to 15% yields. Debt issuers face a more skeptical investor base in leveraged finance, with buyers constrained by portfolio rules limiting exposure to riskier borrowers. Credit investors are demanding proof of revenue to support the debt being raised, with the joke becoming \"What's revenue going to be like next year? I don't know, but it's going to be big.\"",
  "summary": null,
  "key_points": [
    "AI-related borrowing in US credit market reached $88 billion in 2025",
    "High-yield investors demand proof of revenue for AI issuers",
    "Data centers and AI infrastructure supply drive high-yield market"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "CNA - Business",
        "title": "Analysis:AI borrowers face tough sell in risky corners of US credit market",
        "url": "https://urgent.news/2026/09/30/analysis-ai-borrowers-face-tough-sell-in-risky-corners-of-us-credit-10963455",
        "published": "2026-09-30T14:34:47.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}