Man Group Plc warns that bubble risks are mounting across the credit markets. This alarm comes as companies aggressively issue debt to fund the massive build-out of artificial intelligence infrastructure. The firm suggests that the sheer scale of these sales is creating an unsustainable environment.

Bond sales are currently breaking records because the race to lead in AI requires immense capital. Companies are leveraging the debt markets to secure the funding needed for hardware and data centers. This surge in issuance reflects a desperate scramble for infrastructure that supports AI capabilities.

Investors now face a situation where the speed of borrowing may outpace actual returns. When bond sales reach record levels to fund a single technology trend, the risk of a correction increases. Bubble risks emerge when the cost of debt exceeds the long-term value of the assets.

Market stability depends on whether these AI investments generate enough cash flow to service the record debt. High-volume bond issuance creates a vulnerability if the AI build-out fails to deliver. The current trajectory indicates a dangerous disconnect between borrowing and value.