The AI race is driving TMT debt issuance
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https://think.ing.com/articles/ai-race-drives-tmt-debt-issuance/
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4 itemsThe AI race is driving TMT debt issuance
The desk interprets the increasing investment in technology, media, and telecommunications (TMT) due to the AI race as a major driving force for debt issuance in both the US and Europe. Per the full note, TMT sectors are projected to account for significant portions of the expected €485 billion total credit issuance by 2026, with approximately €55 billion from Europe and at least $50 billion from the US alone. This surge reflects strong revenue growth expectations driven by AI-related business lines. The desk emphasizes that despite the anticipated debt influx, much of this capex spending will likely be funded through operating cash flows, suggesting a robust underlying financial stability in the sector.