{
  "id": 13924565,
  "title": "AI debt issuance slows as investors reassess financing risks",
  "url": "https://urgent.news/2026/10/12/ai-debt-issuance-slows-as-investors-reassess-financing-risks",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-12T09:30:14.000Z",
  "source": {
    "name": "Private Equity Wire",
    "slug": "private-equity-wire",
    "url": "https://www.privateequitywire.co.uk/ai-debt-issuance-slows-as-investors-reassess-financing-risks/"
  },
  "original_language": "en",
  "account": "AI-linked debt issuance declined significantly in September, according to a Financial Times report. Morgan Stanley's data shows issuance at $23bn, down from August's $31bn and far below the June record of $113bn. The decline came as investors grew cautious about rising leverage, infrastructure costs, and uncertain returns on AI investments. The data includes public bond markets and private placements. The slowdown followed a period of heavy borrowing for AI infrastructure, such as data centers and advanced semiconductors. In 2026, the total AI-related debt raised was estimated at $466bn, compared to $101bn over the same period in 2025. In the US investment-grade market, AI bond issuance stalled in September following major tech companies' financing of roughly $306bn from January to August. Morgan Stanley attributed the drop mainly to the volume of financing completed earlier in the year, alongside concerns over returns and opposition to data center projects. This drop in issuance has put credit investors in a stronger position to negotiate lower yields, increasing borrowing costs for tech firms and infrastructure developers. John Aylward, founder of Sona Asset Management, noted that financing conditions were becoming more challenging as lenders hit their exposure limits. The shift in sentiment could impact large financing deals in development, such as a $60bn package for Broadcom and Anthropic and SpaceX's $40bn to buy Nvidia chips. Concerns also arose about the infrastructure needed for AI expansion, particularly electricity access and local opposition to data center construction. Oracle's Project Jupiter data center in New Mexico has faced power access issues, putting $18bn in associated loans at risk. The industry's slowdown might give lenders a chance to reevaluate AI-related financing structures and risks after months of high issuance. Experts like Rob Dafforn, CIO of Polus Capital, questioned whether investors were fully pricing the risks of highly leveraged AI transactions, given the uncertainty of development timelines and future returns. Polus has sidestepped investing in the sector but is now evaluating existing AI-related financing for potential opportunities. The slowdown reflects growing scrutiny on the financing behind AI infrastructure, with credit investors focusing on leverage, execution risk, and projects' ability to generate sufficient returns to cover their debt.",
  "summary": "Global AI-related debt issuance fell sharply in September as investors grew increasingly cautious over rising leverage, infrastructure costs and uncertainty surrounding returns on investment, according to a report by the Financial Times.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "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."
}