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DoubleLine’s Cohen Says AI Bubble Is Coming to Credit Markets

Artificial intelligence debt will almost certainly reach bubble levels eventually, given the history of periods of heavy investments in areas like railroads and the internet, said DoubleLine portfolio manager Robert Cohen.

Robert Cohen, director of global developed credit at DoubleLine, during the Bloomberg Global Credit Forum in New York, US, on Wednesday, June 3, 2026. The event gathers some of the industry's most influential voices to explore where debt markets go from here. Photographer: Michael Nagle/Bloomberg
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DoubleLine’s Cohen Says AI Bubble Is Coming to Credit Markets

Artificial intelligence debt will almost certainly reach bubble levels eventually, given the history of periods of heavy investments in areas like railroads and the internet, said DoubleLine portfolio manager Robert Cohen.

Robert Cohen, director of global developed credit at DoubleLine, during the Bloomberg Global Credit Forum in New York, US, on Wednesday, June 3, 2026. The event gathers some of the industry's most influential voices to explore where debt markets go from here. Photographer: Michael Nagle/Bloomberg
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Microsoft Partner IREN Borrows $3.6 Billion for Nvidia Chips

IREN Ltd., a company that builds and operates data centers for training artificial intelligence models, borrowed about $3.6 billion to provide computing capacity to Microsoft Corp.

Components of a Nvidia Corp. GB3000 GPU on display during Hon Hai Tech Day conference in Taipei, Taiwan, on Friday, Nov. 21, 2025. OpenAI is partnering with Hon Hai Precision Industry Co. to design and manufacture hardware for data centers, the latest move by the ChatGPT-maker to meet its surging need for infrastructure to support artificial intelligence systems.
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US Open Stadium Seeks $400 Million Private Debt for Revamp Plans

The United States Tennis Association is in talks with institutional investors to borrow at least $400 million of private credit to refurbish New York’s Arthur Ashe Stadium.

The Arthur Ashe stadium during the national anthem prior to the Men's Singles Final match of the 2025 US Open in New York, on Sept. 7. Photographer: Ishika Samant/Getty Images
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PE-Owned Insurers Boosting Private Credit Holdings, Study Finds

Life insurance companies owned by private equity firms have quietly reshaped their portfolios, piling into higher-yielding alternative credit in a shift that’s entangled the industry with the broader financial system, according to researchers at the Federal Reserve Bank of Chicago.

The Apollo Global Management LLC office in New York.
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Carson Block Lays Out Bearish Credit ETF Bets Amid AI Fears

Famed short seller Carson Block is placing bearish bets on some of the biggest corporate credit ETFs as a way to hedge the risk of economic malaise caused by AI.

Carson Block, chief executive officer of Muddy Waters Capital LLC, following a Bloomberg Television interview in London, UK, on Thursday, Nov. 21, 2024. Block said he's shorting the shares of cosmetics brand Elf Beauty Inc.
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Morgan Stanley Sees Private Credit Default Rates Reaching 8%

Default rates in direct lending will climb to 8% as advances in artificial intelligence continually disrupt the software industry, according to Morgan Stanley.

A Morgan Stanley logo hangs in the window of a retail brokerage office in New York, Thursday, July 28, 2005. Morgan Stanley, the world's biggest securities firm, is eliminating about 1,000 retail brokers to boost profitability in a business that trails Merrill Lynch & Co. and Citigroup Inc.
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Oaktree’s Poli Says Bigger Price Moves in Credit Are Coming

Oaktree Capital Management’s Danielle Poli says the moment for the distressed debt shop to scoop up the asset class in droves isn’t here yet as global credit markets remain relatively resilient.

Danielle Poli, managing director and assistant portfolio manager of Oaktree, during a Bloomberg Television interview ahead of Bloomberg's Women, Money and Power conference in London, UK, on Wednesday, Oct. 1, 2025. The event will include debates and discussion between the world's most influential female voices in finance.
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Voya Limits Data Center Credit Investing on AI Demand Worries

Technology companies have borrowed billions to fuel the rapid expansion of data centers for AI, but that demand is at risk of reaching a plateau before the debts are all paid back, according to Voya Financial Inc.’s investment arm.

BARCELONA, SPAIN - 2026/03/02: AI data centers are seen on show at the Mobile World Congress 2026 (MWC) at the Fira de Barcelona. The GSMA Mobile World Congress one of the most important technology and communications trade shows worldwide, held annually in Barcelona, with the biggest technology and mobile companies from all over the world presenting their latest products. (Photo by Davide Bonaldo/SOPA Images/LightRocket via Getty Images)
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Voya Limits Data Center Credit Investing on AI Demand Worries

Technology companies have borrowed billions to fuel the rapid expansion of data centers for AI, but that demand is at risk of reaching a plateau before the debts are all paid back, according to Voya Financial Inc.’s investment arm.

BARCELONA, SPAIN - 2026/03/02: AI data centers are seen on show at the Mobile World Congress 2026 (MWC) at the Fira de Barcelona. The GSMA Mobile World Congress one of the most important technology and communications trade shows worldwide, held annually in Barcelona, with the biggest technology and mobile companies from all over the world presenting their latest products. (Photo by Davide Bonaldo/SOPA Images/LightRocket via Getty Images)
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