The Swiss bank has issued a stark warning on AI, but within the 133-page report it’s also warned of other risks including hedge funds playing in the bond market

The BIS warns AI infrastructure spending by hyperscalers could lead to a bust, flagging $100 billion in bond issuance and hidden shadow borrowing risks.

The Bank for International Settlements flagged AI capex, circular financing deals, and poorly disclosed asset pledging as systemic risks in its annual report.

The Swiss bank has issued a stark warning on AI, but within the 133-page report it’s also warned of other risks including hedge funds playing in the bond market

“Disappointment in returns could trigger a sudden pullback in financing and turn the capex boom into a protracted investment bust, with potential knock-on effects on financial…

The vast surge of investment in AI, which has powered global stock markets to record highs, risks ending in a financial bust, the Bank for International Settlements warns, as the…

The Bank for International Settlements warns that over $1 trillion in AI spending by top hyperscalers could trigger a severe investment bust and recession.