Executive Summary
Morgan Stanley projects $2.25 trillion in investment grade bond issuance for 2026, representing 25% year-over-year growth, driven primarily by AI capex that will outpace revenue generation and pressure free cash flow. The firm's credit strategists argue that AI-related spending will be 'relatively insensitive to macro conditions'—meaning companies will fund compute infrastructure regardless of interest rate levels or economic growth. This creates a structural financing gap where credit markets b...
Key Investment Opportunity
Investment Grade Credit Surge
Massive increase in high-quality corporate bond issuance driven by AI infrastructure needs, with spreads remaining contained despite supply surge
This is a preview. Log in to see the full analysis including investment opportunities, risks, catalysts, and detailed insights.