DoubleLine portfolio manager Robert Cohen says credit markets could eventually see “bubble” conditions driven by artificial-intelligence-related borrowing. Speaking at the Bloomberg Global Credit Forum in New York, where he appears in his role overseeing developed credit, Cohen points to historical episodes in which large, concentrated investments in specific sectors—such as railroads and the early internet—were later followed by periods associated with market excess. He argues that, based on that pattern, AI-related debt is likely to rise to levels that resemble prior “bubble” phases, even if the timing is not specified. The commentary links the growth in AI investment themes to the structure and risk dynamics of credit markets, suggesting that as financing expands, the associated debt could become vulnerable to overextension. Cohen’s remarks are framed as a warning about potential future conditions rather than an assessment of current credit-market stress, and they do not cite a specific metric or named company. Overall, the reporting centers on the expectation that AI debt issuance and exposure could eventually reach unusually elevated valuations or risk profiles consistent with past speculative cycles.
DoubleLine’s Robert Cohen Warns AI Debt May Reach “Bubble” Levels
DoubleLine portfolio manager Robert Cohen says credit markets could eventually see “bubble” conditions driven by artificial-intelligence-related borrowing. Speaking at the Bloomberg Global Credit Foru...
- Robert Cohen, of DoubleLine, warns that AI-related debt could eventually reach “bubble” levels in credit markets.
- Cohen makes the remarks at the Bloomberg Global Credit Forum in New York.
- He links the warning to historical investment cycles, citing examples such as railroads and the internet.
- The comment focuses on how heavy AI investment could translate into elevated borrowing and credit risk over time.
- The reports do not specify a timing for when bubble conditions would occur, nor provide particular company-level examples.
Robert Cohen, director of global developed credit at DoubleLine, says artificial intelligence debt will almost certainly reach bubble levels during a panel at the Bloomberg Global Credit Forum in New York. (Source: Bloomberg)
2 months agoArtificial 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.
2 months agoNvidia in talks to acquire Hugging Face in $13 billion-plus deal, reports say
Nvidia is reportedly in talks to acquire Hugging Face in a deal valued at more than $13 billion, according to Business I...
David Chandler gives evidence as corruption watchdog probes alleged plot to remove him
David Chandler, appointed to oversee and reform New South Wales’ construction sector, is due to give evidence as an anti...
Nvidia reports $96.2 billion quarterly revenue, projecting higher sales amid AI demand
Nvidia reports a second-quarter revenue of $96.2 billion, more than doubling year over year, and net profit of $59.69 bi...