Core Viewpoint - The article discusses the structural transformation in the capital markets, highlighting that AI has overtaken banks as the largest sector in the investment-grade corporate bond market, with AI-related companies expected to account for 14% of the market by 2025, surpassing the banking sector's 11.5% [6][7]. Group 1: Debt Growth and Market Dynamics - Since 2020, the share of AI-related debt has been steadily increasing, while the banking sector's share has been declining, with AI expected to reach a historical high by 2025 [9]. - The total debt of AI-related companies has surged by $400 billion, reaching $1.2 trillion, marking a historical peak [10]. - In contrast, the total debt of the banking sector stands at $3 trillion, but its market share is gradually being eroded [11]. Group 2: Investment Grade Redefined - The capital markets are redefining what "investment grade" means, shifting the focus from who borrows the most to who borrows the most sustainably [12]. - A comparison between AI and banking sector debt reveals a significant divergence in scale, leverage, and quality, with AI's six major players having a healthier debt structure and stronger cash flows [14]. Group 3: Leverage and Risk Perception - Despite the banking sector's total debt being nearly $1.8 trillion higher than that of AI, the leverage ratio (Debt/Equity) shows a stark difference: AI's six giants have an average leverage of 0.47, while the four major banks average 2.79 [16]. - This indicates that AI companies are leveraging future cash flows for debt, whereas banks are using debt to support existing debt [16][17]. Group 4: The Shift to Computational Assets - The migration of debt structure reflects a deeper reality where computational power has become the new collateral in the economic cycle [19]. - Major tech companies like Nvidia, Microsoft, and Apple have low market value to debt ratios, indicating minimal reliance on debt expansion, and their bonds are highly sought after in the market [19][20]. Group 5: Future Implications - The appeal of AI bonds lies in their stable cash flows, high growth potential, and technological moats, distinguishing them from bank bonds [21]. - The revolution in AI debt is just beginning, with the shift in the largest weight industry in the debt market from banks to AI representing not just an asset allocation change but a rebirth of financial logic [22][24]. - Over the next decade, the safety margin for capital may shift from "collateralized financial assets" to "self-evolving intelligent assets" [25].