Corporate bond buyers get picky with flood of AI debt

By Gertrude Chavez-Dreyfuss NEW YORK, Sept 22 (Reuters) - The market for highly rated corporate credit has split in two: bonds issued by AI-related firms are being met with caution, while those sold by so-called traditional issuers such as financial and industrial firms are prompting spirited bidding. Portfolio managers say they are not concerned that hyperscalers and other AI-linked ‌companies are in danger of defaulting. Rather, the sheer volume and unpredictability of borrowing needed to finance data centers, chips and AI infrastructure are prompting bond market shoppers to ‌demand generous concessions and to rethink portfolio concentration limits.