The surge in corporate borrowing for artificial intelligence projects and the rapid expansion of the private credit market have combined to push daily trading in corporate bonds to unprecedented heights. According to data from financial research provider Crisil Coalition Greenwich, an average of $50 billion worth of investment-grade and high-yield bonds traded hands every single day in 2025. This marks a new record, up from $46 billion in 2024, continuing a trend powered by structural shifts like the rise of electronic trading.
The AI and Infrastructure Borrowing Boom
A significant driver of this trading activity is the wave of new bond sales. Companies, particularly in the technology and utilities sectors, are issuing massive amounts of debt to fund investments in AI infrastructure, such as constructing new data centers. Major dealers like Morgan Stanley and JPMorgan Chase & Co. anticipate record issuance for high-grade US corporate debt this year, largely fueled by this AI capital expenditure.
This borrowing is not confined to public markets. A notable example is the $27 billion high-grade debt raise last year by Meta Platforms Inc. and Blue Owl Capital Inc. for a data center project in rural Louisiana, conducted through private markets. According to Rehan Latif, global head of credit trading at Morgan Stanley, such large-scale private deals are beginning to stimulate more secondary trading activity in private credit as investors seek liquidity.
"I view it very much as the biggest single opportunity coming into 2026," Latif stated in an interview. "Every single time a new market is created, there is a little bit of a lag before the secondary market kicks off. The reality is this is the right time for it to happen."
Market Dynamics and Trading Innovations
The nature of the bonds being sold is also contributing to higher volatility and trading interest. Tech firms and utilities often issue longer-dated bonds to match the lifespan of their AI-related investments. Sam Berberian of Citadel Securities and Jeff Eason, the firm's head investment-grade desk analyst, note that these bonds are more sensitive to shifts in the yield curve. This price volatility makes them attractive to active traders like hedge funds.
As companies pile on debt for AI, investors are meticulously managing portfolio risks to avoid overexposure to tech and utilities. Concerns about a potential AI bubble are expected to increase hedging activity in markets like credit default swaps, further boosting overall trading volumes.
Market evolution is another key factor. The adoption of portfolio trading, fixed-income ETFs, electronic execution, and high-speed strategies—long common in equities—has made corporate bond markets more fluid. Alex Finston, partner and co-head of US credit trading at Goldman Sachs, notes a shift towards macro-level strategies using a broader set of instruments. These innovations have slashed corporate-bond trading costs by up to two-thirds in recent years.
The Human Element in an Electronic Age
Despite the growth of automation, voice trading remains crucial. Grant Nachman, founder of Shorecliff Asset Management, cautions that electronic execution has limits, especially in less liquid market segments. He also highlights the strategic value of maintaining relationships with dealers for allocations, research, and market insight.
"There’s likely a ceiling on how much electronic trading there can be," Nachman said. "It helps to be a relevant voice counterparty to get some of that."
Looking ahead, the momentum from 2025 is set to continue. Trading in related markets like credit ETFs and derivatives is also rising. Citadel Securities' Sam Berberian confidently predicts, "We expect trading activity to pick up in 2026." The confluence of technological demand, market innovation, and evolving investor strategies suggests the record-breaking trend in corporate bond trading is far from over.
