The corporate credit market has notably split, with bonds from AI-related firms now met with caution, while traditional issuers like financial and industrial companies still find strong demand. This shift means AI-related bonds are trading at wider spreads compared to the overall investment-grade market. This repricing reflects investor concern over the rapid increase in AI debt, which has already surpassed $575 billion in 2026.
A key example of this repricing is an affiliate of Blue Owl Capital's issuance of $1.1 billion in high-yield bonds for CoreWeave data centers. These bonds were priced at a 9.25% yield, which is approximately 2.7 percentage points higher than the average for similarly rated peers. S&P Global Ratings assigned the issuance a BB- rating, three notches below investment grade, citing exposure to a single speculative-grade tenant, CoreWeave, as a primary risk. The 76 megawatts of IT capacity are exclusively leased to CoreWeave for 15 years, generating a projected $2.94 billion in cash flow, but the concentration of risk to a single tenant, project, and cash flow source led to investors demanding a significantly higher risk premium.
SoftBank Group also recently issued $11.1 billion in dollar and euro-denominated bonds to fund its AI investments, including commitments to OpenAI. This included $1 billion in 3.5-year notes at an 8.625% yield, $4.5 billion in 5.5-year notes at a 9.25% yield, and $4.5 billion in 7.5-year notes at a 9.75% yield. While strong demand allowed SoftBank to reduce initial pricing, these yields are notably higher than the company has paid in the past, marking one of the largest junk-bond offerings on record for the company. This move makes SoftBank the largest corporate junk-bond borrower globally, further highlighting the increased cost of financing for AI ambitions.
