U.S. TREASURY SECRETARY BESSENT SAYS HE DOES NOT THINK AI BORROWING IS PROBLEMATIC AT ALL AND DOES NOT SEE WIDENING SPREADS ON AI-ISSUER DEBT AS PROBLEMATIC, ADDING THE U.S. IS STILL SEEING DEALS GET DONE AND THAT META IS FINANCING WITH EQUITY

Treasury Secretary Scott Bessent stated that he does not view borrowing by AI-focused companies as problematic and does not regard widening credit spreads on AI-issuer debt as a concern, noting that deals are still being completed in the U.S. market, with Meta Platforms referenced in the headline. The core transmission channel is credit conditions and cost of capital: when a sovereign official dismisses spread widening in a sector, it signals that policymakers are not treating AI-related leverage as a systemic stress point, which can support risk appetite and keep new-issue demand intact for large-cap technology borrowers. Meta, which has been a heavy issuer to fund data center and AI infrastructure buildout, is the most directly exposed name, since its financing costs and the spread it pays over Treasuries are sensitive to shifts in investor appetite for hyperscaler debt. U.S. Treasuries are secondarily affected through supply and term-premium channels, because large corporate AI capex financed through bonds competes for investor capital and can influence the broader duration and spread complex. Traders should watch the pricing and order-book depth of Meta's next bond offering and

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