BofA finds AI is creating a credit divide that could reach consumers

Industry
โดย TheStreet·US·Read original
Summary · why it matters

Bank of America says artificial intelligence is splitting leveraged-finance borrowers into clear winners and losers, with AI beneficiaries posting dramatically stronger revenue and EBITDA growth than companies facing AI disruption. Among high-yield issuers, the AI-tailwind group grew revenue 16.2% year over year in the second quarter and adjusted EBITDA 15.2%, while the AI-headwind group grew revenue just 4.1% and EBITDA 7.6%. For leveraged-loan borrowers, the gap was even wider: AI beneficiaries saw 26.8% revenue growth versus 3.6% for AI-risk companies, and EBITDA growth of 23.4% versus 3%. BofA calls the pattern a "Credit-K," noting that hardware companies in the leveraged-loan market recorded nearly 48% revenue growth and more than 50% EBITDA growth, while software and services revenue rose only about 4.5% to 5.8%. Companies have sold over $335.7 billion in AI-linked U.S. dollar debt year-to-date, with investment-grade debt accounting for about $255 billion, high-yield about $40 billion, and loans and direct lending about $20 billion each. Investment-grade AI debt trades at spreads of roughly 119 basis points, about 46 basis points wider than comparable non-AI debt, while high-yield AI spreads are around 320 basis points, a premium of about 147 basis points.

Impact on stocks 5

Artificial Intelligence · 4 stocks
Financials · 1 stocks
Bank of America Corp
BAC
▲ PositiveCapitalrelevance

BofA's analysis highlights AI-driven credit divide, potentially boosting its research and trading business.

Theme Impact 1

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