AI systemic fragility: Credit concentration and cyber contagion

Hyperscaler issuance is roughly $180 billion and may reach $250 billion by year-end, with broader AI obligations near $1.65 trillion. Rising yields, wider spreads, lower bond-cover ratios and AI-related infrastructure bottlenecks increase financing and valuation sensitivity. Bank of England warnings now extend to autonomous-AI cyber incidents, operational failures and interconnected financial exposures, although no AI credit event or bank breach is confirmed.