AI is becoming a credit-cycle story, not just a technology story

AI Is Becoming a Credit Cycle, Not Just a Technology Theme

State Street Investment Management’s Global Credit Research team examines how AI’s infrastructure buildout is reshaping financing, credit supply and issuer fundamentals across debt markets.

• Near-term AI benefits are appearing mainly through productivity gains and stronger cash flows rather than widespread business-model disruption.
• Hyperscaler debt issuance is increasing investment-grade supply, while structured credit offers exposure to data centres and other infrastructure supported by contractual cash flows.
• Growing dispersion across issuers makes security selection increasingly important, particularly in leveraged finance and software.

Explore the full report to understand how AI is transforming credit markets beyond the technology sector.