Fixed-income managers say markets are beginning to show stress around how quickly AI-related themes have been priced into credit and issuance. In interviews, Andrzej Skiba of BlueBay US Fixed Income at RBC Global Asset Management says AI has been a “bust” for fixed income, while Kyra Fecteau of Wellington Management frames the situation as the market arriving at a form of AI discipline.
Both analysts discuss record levels of credit issuance linked to large corporate borrowers, including hyperscalers, and the implications for spreads, demand, and risk. They discuss whether the pace of AI-driven financing is matched by fundamentals and whether investors’ appetite for that growth can continue if returns or operating results do not align with expectations.
While Skiba’s comment emphasizes disappointment and potential overpricing, Fecteau focuses more on the possibility that market forces—such as changing credit conditions or investor pushback—lead to tighter scrutiny. The overall discussion centers on whether the current cycle of AI-linked issuance is supported by durable cash flows or faces adjustment as investors reassess risk.
