Apollo Chief Economist: Massive Debt Issuance by AI Companies May Crowd Out Demand for U.S. Treasuries

Odaily Planet Daily News Apollo Chief Economist Torsten Slok issued a risk warning, stating that major AI companies are currently taking on large amounts of debt for industrial expansion, with the total scale of related bond issuance estimated to reach $700 billion. This massive new supply is diverting market funds, causing a significant crowding-out effect on U.S. Treasury bonds and other credit instruments.

Torsten Slok stated that if the scale of debt financing for AI infrastructure continues to expand, the overall allocation logic of funds in the bond market will be restructured, persistently suppressing demand for U.S. Treasury allocations while exerting medium-to-long-term pressure on the liquidity of the entire credit market.