AI-related debt issuance is skyrocketing: US corporate investment-grade gross debt issuance is projected to surge +25% YoY in 2026, to a record $2.25 trillion. This would mark the 4th consecutive annual increase. After accounting for maturing debt that is repaid, net new investment-grade debt issuance is projected to jump +57% YoY to a record $1 trillion. Year-to-date, investment-grade gross issuance has already risen +20% YoY, to $796 billion. The primary driver behind the surge is AI CapEx, with AI and AI-related debt issuance estimated to increase to at least $400 billion this year, according to Morgan Stanley. The AI revolution is fueling a historic surge in corporate borrowing.(The Kobeissi Letter)