Woofun AI notes that Apollo’s chief economist Torsten Slok warns of significant risks as leading AI companies borrow heavily to expand operations. The estimated $700 billion in bond issuances is diverting market funds, creating a crowding-out effect on Treasury bonds and other credit instruments.

Slok stated that continued growth in AI infrastructure debt financing will reshape bond market capital allocation logic.

This shift suppresses demand for Treasuries while imposing medium- to long-term liquidity pressures across the entire credit market.