BIS flags hidden debt behind the AI build-out.

The BIS says AI capex is increasingly funded by long-term debt and off-balance-sheet deals. Bond market spillovers are small for now, but sustained issuance could change that.

A BIS Bulletin by Mathias Drehmann and Egemen Eren, published 27 October 2026, examines how AI infrastructure build-out is financed. The authors note that capex is growing fast, with a rising share funded by long-term debt and complex off-balance-sheet arrangements. Off-balance-sheet commitments from a few large firms transform the debt's credit rating, attracting institutional capital, while banks often lend to both the vehicles and investors holding the debt. Spillovers to US Treasury and investment-grade bond markets on AI-financing news days in 2026 were small and short-lived, though sustained issuance at the current pace could change that.

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