DoubleLine’s Cohen Sounds the Alarm on AI-Debt Funding Frenzy

Fixed-income investors should tread carefully when it comes to funding the artificial intelligence boom, according to DoubleLine Capital’s Robert Cohen.

“You have to be not only cautious about the tech sector, but the tangential, related sectors that are providing support for these new projects,” the investment firm’s director of global developed credit, said on the latest Bloomberg Intelligence Credit Edge podcast. “Who knows what the spillover will be if the music stops?”

The warning comes as a wave of borrowing from technology companies investing in AI sweeps across private and public debt markets. This week, Alphabet Inc. ...