‘AI Bubble’ Becomes Credit’s Biggest Scare, BofA Survey Shows

An ‘AI bubble’ is the biggest concern of credit investors for the first time ever, according to a survey among Bank of America Corp.’s clients.

“Few worry about geopolitics or a central bank policy error,” BofA strategists including Barnaby Martin wrote in a note on Tuesday. Some 23% of survey’s investment-grade respondents saw the threat of an AI bubble as their top concern, up from 9% in BofA’s previous survey in December.

Worries over a potentially unsustainable surge in investment and valuations of AI companies overtook ‘Bubbles in Credit’ as the top concern, according to the survey. Anxiety over ...