Bank of America survey: AI bubble becomes the number one risk in the credit market, with 23% of investment-grade investors viewing it as the biggest threat

Media reports indicate that the "AI bubble" has become the biggest concern for credit investors for the first time, according to a survey conducted by Bank of America among its clients.

Bank of America strategist Barnaby Martin and others wrote in a report on Tuesday:

"Almost no one is worried about geopolitical issues or central bank policy missteps."

Among the investment-grade respondents in this survey, 23% view the risk of an AI bubble as their primary concern, compared to only 9% in Bank of America's previous survey last December.

The survey shows that concerns about unsustainable surges in investment and valuation of AI companies have surpassed "credit market bubbles," becoming the new biggest risk. During 2025, trade tensions and global economic recession were also seen as the biggest potential risks.

Investment-grade investors have raised their expectations for bond issuance from "hyperscalers" this year to $285 billion, a significant increase from the $210 billion projected in last December's survey.

However, the strategists wrote:

"Investors are actually more relaxed about the ultimate technological disruption: only 10% of respondents believe that the elimination of AI-driven companies is their biggest concern."

At the same time, they noted that fund inflows are the main factor determining credit spread levels and are sufficient to offset the bond weakness caused by AI risks.

A total of 54 high-rated and high-yield clients of Bank of America participated in the February survey, including insurance companies, pension funds, and hedge funds