Man Group warns AI bond boom carries 'violent' correction risk

Man Group's credit strategists said "bubble risks" are mounting in AI infrastructure debt as record bond issuance funds data-center buildouts. The hedge fund pointed to Nvidia's recent $20B+ bond raise, CoreWeave's euro junk debut, Amazon's $17.5B bank loan, and Csquare's IPO filing as signs of overextension that could unwind violently if AI revenue growth disappoints. The warning aligns with Citadel Securities and Citrini analysis flagged earlier this week that frontier models may prove "expensive to run, constrained by physical bottlenecks, and vulnerable to unrealistic deployment cost expectations." Together they paint a market where AI credit and equity are increasingly priced for perfection.

View full digest for June 17, 2026