If you ask institutional investors, the global economy is heading toward a no-landing scenario – growth remains resilient, inflation fears are receding, and recession risk has nearly disappeared from consensus forecasts.
Yet the same investors focus on a less conventional threat—the enormous bill for artificial intelligence.
In Bank of America's July Global Fund Manager Survey, 48% of respondents identified AI hyperscaler capital expenditure as the most likely source of a systemic credit event.
They ranked it ahead of private credit, consumer credit, and the more familiar macro risks that have dominated markets in recent years, including the Middle East conflict, tariffs, and recession.
The paradox is subtle but notable.
