Lenders Demand Higher Yields From Risky AI Borrowers
Low-rated US credit markets face mounting skepticism as AI borrowers seek heavy upfront capital. Lenders are demanding higher yields to offset unproven earnings and project risks.
Xurve View
Insights:
Xurve View
Low-rated artificial intelligence borrowers in the United States have issued $88 billion in debt this year, facing surging borrowing costs and leery lenders. That compares with just $20 billion in leveraged finance issuance across the entire span of 2025. Investors are scrutinizing collateral values and revenue projections as Treasury selloffs push yields higher.
