Major US technology companies are issuing large amounts of debt, causing bond investors to believe that some emerging market companies are safer targets. The risk premium for the emerging market corporate bond index is converging with similar US benchmark indices. The interest rate spread between the two is currently only a few basis points. This convergence is due to a surge in the scale of AI-related financing: US technology companies have borrowed more than 600 billion US dollars globally for capital expenses, and the total amount of financing is expected to reach trillions of dollars by 2030.

Major US technology companies are issuing large amounts of debt, causing bond investors to believe that some emerging market companies are safer targets. The risk premium for the emerging market corporate bond index is converging with similar US benchmark indices. The interest rate spread between the two is currently only a few basis points. This convergence is due to a surge in the scale of AI-related financing: US tech companies have borrowed more than 600 billion US dollars globally for capital expenses, and the total amount of financing is expected to reach trillions of dollars by 2030.