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Artificial intelligence spending and the growth of the private credit market are helping to generate records for corporate-bond trading, with an average of $50b in investment-grade and high-yield bonds changing hands each trading day last year. As companies borrow more for AI projects, investors are being forced to work harder to make sure they don’t have too much exposure to tech companies and utilities across their portfolios. Heightened concerns about a potential AI bubble are also expected to drive increased hedging activity in the credit default swap market, further boosting trading volumes.
“I view it very much as the biggest single opportunity coming into 2026,” said Latif in an interview. “Every single time a new market is created, there is a little bit of a lag before the secondary market kicks off. The reality is this is the right time for it to happen.”
