AI Spending Drives Record Corporate Bond Trading

Companies are borrowing a lot of money to invest in artificial intelligence, like building data centers.

This has led to a lot of trading in corporate bonds.

Last year, an average of $50 billion in bonds were traded each day, which is a record.

This is happening because companies are selling new bonds and investors are trading old ones.

Big banks like Morgan Stanley and JPMorgan Chase expect even more bond sales this year.

Some of this borrowing is happening in private markets, which is also making the private credit market more active.

Investors are using new ways to trade bonds, like electronic trading and portfolio trading, which makes it easier and cheaper to trade.

However, some experts say that voice trading, where people talk to each other to make trades, is still important, especially for less active parts of the market.