AI-linked borrowing is ramping up: AI-related Investment-Grade bond issuance now reflects ~14% of total new issuance in the US corporate bond market. This percentage has doubled YoY after remaining unchanged since 2022. As a result, AI-linked debt is now the 3rd-largest category in the investment-grade bond market. This is only behind Financials and Banks, which make up 25% and 23%, respectively. Put simply, AI is now the fastest-growing source of new issuance in the IG bond market outside of financial services. The AI financing boom is in full swing.(The Kobeissi Letter)