JP Morgan Predicts AI to Drive $1.8 Trillion Bond Sales by 2026
- JP Morgan forecasts $1.8 trillion bond sales in 2026 due to AI investments.
- Tech, media, and telecom firms likely lead bond issuance.
- Macro liquidity shifts impact tech and crypto sectors.
JP Morgan projects a $1.8 trillion increase in bond sales by 2026, driven by AI infrastructure investments, led by key technology, media, and telecom firms.
AI-driven bond sales could reshape market dynamics, impacting liquidity and cryptocurrency flows, with potential effects on major tokens like Ethereum and Bitcoin.
JP Morgan has projected that artificial intelligence (AI) infrastructure investments will drive over $1.8 trillion in new bond sales by 2026. This significant development is poised to be led by investment-grade issuers within the technology, media, and telecom sectors.
JP Morgan’s strategists, including Nathaniel Rosenbaum and Eric Beinstein, have highlighted firms like Meta and Oracle as major issuers in AI infrastructure bonds. CEO Jamie Dimon emphasized the near-term profits and productivity boosts as AI adoption accelerates.
“AI adoption will provide a near-term boost to profits and a longer-term boost to productivity.” – Jamie Dimon, CEO, JP Morgan
The projected funding shift is expected to reshape market dynamics, particularly impacting tech companies and crypto markets. An increase in liquidity flows and risk assets is anticipated, similar to the 2020 bond issuance trends.
JP Morgan noted potential structural risks if overleveraging from the tech bubble-like events occurs, citing historical parallels. The projected moves could also increase the role of private credit and potential government involvement.
The impacts on cryptocurrencies, notably Ethereum and Bitcoin, are expected through macro liquidity changes. JP Morgan strategists express that increased bond issuance could crowd out risk appetites, influencing crypto flows indirectly.
