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AI Fuels Record Bond Trading Boom
4 Jan
Summary
- Average daily bond trading reached $50 billion in 2025, a new record.
- Companies fund AI investments, boosting new bond sales and trading.
- Private credit market growth spurs increased trading activity.
Corporate bond trading reached unprecedented levels in 2025, averaging $50 billion daily. This record activity is driven by companies funding significant investments in artificial intelligence infrastructure, such as data centers. The issuance of new bonds related to these AI projects encourages investors to trade older debt for fresh securities, thereby increasing market liquidity and volume.
The burgeoning private credit market is also a key factor, with large deals like Meta Platforms and Blue Owl Capital raising substantial funds for data center development. This expansion in private markets leads to increased trading opportunities as investors seek to enter and exit positions. Experts anticipate this trend to continue as a major opportunity through 2026.
Furthermore, longer-dated bonds issued by tech and utility companies for AI-tied investments are proving attractive to active traders, including hedge funds. Increased hedging activity in the credit default swap market, driven by concerns about an AI bubble, is also expected to boost trading volumes further, solidifying a new era of active bond market participation.
