DoubleLine and Oaktree are focusing on debt they see as durable through a potential AI credit downturn, underscoring a preference for fundamentals over speculative growth as issuance climbs.
DoubleLine Capital and Oaktree Capital are selectively buying bonds they believe can hold up through a deep credit cycle as AI-driven borrowing accelerates. Their strategy reflects caution toward a financing boom tied to artificial intelligence and emphasizes fundamentals over speculative growth. Robert Cohen said the probability of an AI bubble is “about 100%.” Barclays said U.S. hyperscalers have issued more than $155 billion of global unsecured bonds this year, more than 45% above last year’s full-year total, underscoring how AI investment is feeding a surge in debt markets while prompting some investors to hedge against a potential credit bust.