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AI TRENDS | Apollo Economist Torsten Slok Warns AI Debt Issuance Is Crowding Out U.S. Treasuries

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2026-06-30 13:04:20
Apollo Chief Economist Torsten Slok issued a risk warning saying major AI companies are taking on large amounts of debt to fund industry expansion, with total related bond issuance estimated at $700 billion. According to Odaily, he said the surge in new supply is diverting market capital and creating a noticeable crowding-out effect on U.S. Treasuries and other credit instruments.

Slok said that if debt financing for AI infrastructure continues to expand, the bond market’s overall capital allocation logic could be reshaped. He added that this could continue to suppress demand for U.S. Treasury allocations and place medium- to long-term pressure on liquidity across the broader credit market.
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