The smartest money in credit markets is making a contrarian bet. DoubleLine Capital and Oaktree Capital Management are quietly buying debt instruments designed to hold up-or even thrive-when the trillion-dollar AI infrastructure boom hits a wall.
At the Bloomberg Global Credit Forum in June 2026, portfolio managers Robert Cohen and Christina Lee flagged frothy bond pricing and urged a highly selective approach to data center financing. DoubleLine has been cautious on AI debt since late 2025, warning of potential over-leverage in US investment-grade credit.
Oaktree's parent Brookfield launched a $10 billion AI infrastructure fund with equity from Nvidia, yet Oaktree's credit team is simultaneously positioning for a correction. The message is clear: balance sheet strength and structural protections matter more than sector momentum. The key variable remains whether AI infrastructure revenue can keep pace with mounting debt servicing needs.
If hyperscaler demand plateaus or power grid constraints slow buildouts, debt priced for a perfect world could face significant repricing. DoubleLine and Oaktree are hedging accordingly.