# Deutsche Bank Warns AI Debt Could Deepen Credit Gaps Among Borrowers

By Enna Lee

Canonical URL: https://www.tokenpost.com/news/investing/32999
Published: 2026-10-16T03:45:39.000Z
Updated: 2026-10-16T03:45:39.000Z
Section: Investing

> The bank sees greater pressure on U.S. investment-grade spreads than on European ones. Mid-October market pricing put CoreWeave’s five-year default protection above 1,100 basis points.

Artificial intelligence debt could widen differences in credit performance across borrowers and weigh more on U.S. investment-grade spreads than European ones, Deutsche Bank said in a Sept. 15 outlook.

The outlook linked the pressure to competition for investor capital: U.S. government borrowing needs and bond sales by AI companies are both seeking demand. Deutsche Bank expects AI-related issuance to weigh more on U.S. investment-grade spreads than on European ones. It said company fundamentals and coupon income could limit broad spread increases.

The warning about borrower performance applies more broadly than the regional spread comparison. Deutsche Bank identified weaker high-yield issuers as more vulnerable if high interest rates persist and refinancing needs grow. AI financing, the bank said, could widen the gap between stronger and weaker companies.

Mid-October market pricing put CoreWeave’s five-year credit default swap spread above 1,100 basis points. The yield on its 2031 bond rose as high as 16% before easing to about 14%. Oracle’s five-year spread was near 300 basis points.

A credit default swap, or CDS, is a contract used to buy protection against a borrower’s default. Its spread measures the cost of that protection, so a wider spread reflects greater market pricing of credit risk. It does not establish that a borrower will default.

Jim Reid, a Deutsche Bank strategist, described the risks as “worrying themes at the edges.” The outlook’s regional comparison concerns investment-grade debt, while its warning about widening performance differences is not limited to U.S. borrowers.