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Stock impact report

The AI-led borrowing frenzy could end up driving interest rates higher, Apollo's chief economist says [Yahoo! Finance]

Apollo Global Management, Inc. (New) (APO) 
Last apollo global management, inc. (new) earnings: 5/1 07:00 am Check Earnings Report
US:NYSE Investor Relations: apollo.com/shareholders/overview
Company Research Source: Yahoo! Finance
He said that new investment-grade bond issuance could pull buyers away from the Treasury market. A top economist has a fresh warning about debt-fueled capex spending in 2026. Torsten Sløk, the chief economist at Apollo Global Management, flagged expectations that AI hyperscalers will be significant drivers of investment-grade bond issuance this year. In his view, the flood of new bonds into the market as tech companies look to fund their data centers and other infrastructure is bound to put upward pressure on interest rates. The issue is that more corporate debt issuance could drag buyers away from other bond markets. "The significant increase in hyperscaler issuance raises questions about who will be the marginal buyer of IG paper," he wrote. "Will it come from Treasury purchases and hence put upward pressure on the level of rates? Or might it come from mortgage purchases, putting upward pressure on mortgage spreads?" The economist noted that Wall Street banks can't agree Show less Read more
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