Bank of America: AI Bond Supply Shock Expected to Fade Over Next Two Years

The signal here is about the financing channel, not the technology itself: if AI-related borrowing really does cool, the marginal pressure on credit markets eases without any change in AI demand, which is why the call matters beyond the bond desks that originated it. It affects issuers who have leaned on debt to fund buildouts and the credit investors absorbing that supply. The open question is whether the fade reflects completed financing needs or a rethink of how these projects get funded — and whether other capital sources simply take the bond market's place.