In TrendsStock MarketStocks to BuyAsian StocksApple PaySwastika Infra IPOAI borrowers face tough sell in risky corners of US credit marketAI-linked borrowing by low-rated US firms has surged to $88 billion this year, but lenders are becoming more cautious about unproven revenues, high debt and project risks. Investors are demanding higher yields as AI financing moves further into junk-rated markets.By Reuters September 30, 2026, 8:53:42 PM IST (Published)(Photo Credit : AI Generated )The artificial intelligence boom has arrived in the riskiest corners of US credit markets, where leery lenders are demanding more compensation to fund borrowers whose future earnings remain largely unproven.AI-related issuance by low-rated firms has totaled $88 billion this year, according to Goldman Sachs, with most of the borrowing coming from US issuers. In the first 11 months of 2025, AI-related issuance in leveraged finance — mostly via junk bonds and loans — was just $20 billion, analysts said, citing Neuberger Berman data.Now investors are taking a harder look at these less-established borrowers — questioning their revenue projections, the value of their collateral and how much debt they can realistically support. This comes at a time when higher-rated AI issuers have been on a borrowing spree and a selloff…
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