DBL News & Analysis

AI Boom Drives $5 Trillion Capital Expenditure Forecast

DoubleLine Capital LP and Oaktree Capital Management are purchasing debt linked to the AI sector amidst concerns of a potential credit bust. The Nasdaq 100 fell 5% in an AI-led market downturn as yields increased. U.S. tech companies have issued over $155 billion in unsecured bonds, a 45% rise from last year. Bloomberg Intelligence predicts that AI capital expenditures will reach around $5 trillion over five years, primarily funded through debt, underscoring a significant market opportunity despite associated risks.