Bank of America Survey: AI Bubble Becomes the Number One Risk to the Credit Market, 23% of Investment-Grade Investors See It as the Biggest Threat

SnapshotLaborer · 2026-02-24T21:55:49+00:00

Survey shows that investors' concerns about the "AI bubble" risk have risen to the top, reaching 23%. A significant increase from 9% in December of last year, surpassing the credit market bubble risk. Additionally, bond issuance from cloud service providers is expected to grow to $285 billion.

SnapshotLaborer

2026-02-24 21:55:49

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Media reports indicate that the “AI bubble” has become the biggest concern for credit investors for the first time. This is the result of a survey conducted by Bank of America among its clients.

Bank of America strategist Barnaby Martin and others wrote in a report on Tuesday:

“Almost no one is worried about geopolitical issues or central bank policy mistakes.”

Among the investment-grade respondents in this survey, 23% see the AI bubble risk as their top concern, up from only 9% in a previous survey conducted by Bank of America in December last year.

The survey shows that concerns about unsustainable surges in AI company investments and valuations have surpassed the “credit market bubble” to become the new greatest risk. During 2025, trade tensions and a global recession were also considered the biggest potential risks.

Investment-grade investors have raised their expectations for bond issuance from “hyperscalers” to $285 billion this year, significantly higher than the $210 billion forecast in the December survey.

However, the strategists wrote:

“Investors are more relaxed about the ultimate technological disruption: only 10% of respondents believe that AI-driven corporate淘汰 is their biggest worry.”

Meanwhile, they stated that fund inflows are the main factor determining credit spread levels and are sufficient to offset bond weakness caused by AI risks.

A total of 54 high-rated and high-yield clients of Bank of America participated in the February survey, including insurance companies, pension funds, and hedge funds.

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