Morgan Stanley and Jefferies Warnings: The AI Bubble Moves from Tech Stocks to the Bond and Credit Markets

* Morgan Stanley warns that delays in Oracle's data center openings and rising capital expenditures threaten to strain corporate debt and risk hitting its bond valuations. * Jefferies highlights that cloud giants are increasingly funding massive AI infrastructure through debt issuance rather than cash, driving up credit risk and turning them into heavy bond issuers. * Analysts caution that circular AI capital flows, negative free cash flow projections, and falling returns on invested capital are shifting the core risks of the AI boom directly into the credit and bond markets. Source: Funder