The smartest money in credit markets is doing something interesting right now. Instead of piling into AI-linked debt alongside everyone else, DoubleLine Capital and Oaktree Capital Management are quietly buying instruments they believe will hold up, or even thrive, when the trillion-dollar AI infrastructure binge eventually hits a wall.

The case for caution in a gold rush

Technology companies have committed trillions of dollars to AI infrastructure development, and the debt markets have been more than happy to finance the buildout. At the Bloomberg Global Credit Forum in June 2026, portfolio managers from both firms laid out their thinking. Robert Cohen flagged that bond pricing could reach frothy valuations driven by the sheer volume of tech investment flowing into AI. Christina Lee emphasized that data center financing, the backbone of the AI infrastructure boom, is still in its early stages and demands a highly selective investment approach.

DoubleLine has maintained a cautious posture on AI-related debt since late 2025, warning that the emerging sector’s potential for over-leverage could meaningfully shift the risk profile of the entire US investment-grade credit market.

Oaktree’s dual strategy

Oaktree’s parent company Brookfield has launched a $10 billion fund dedicated to AI infrastructure, attracting equity commitments from heavyweight investors including Nvidia. On the other hand, Oaktree’s credit team is simultaneously building positions in debt that would benefit from a correction in the same sector.

The $10 billion infrastructure fund tells you Oaktree believes in the underlying technology. The credit positioning tells you they think the bond market’s enthusiasm has outpaced the fundamentals.

What this means for investors

The positioning by DoubleLine and Oaktree carries a clear message: structural protections and balance sheet strength matter more than sector momentum right now. Both firms are advocating for credit instruments backed by tangible fundamentals rather than speculative growth narratives.

The key variable to watch is whether AI infrastructure revenue growth can keep pace with the debt servicing requirements being created today. If hyperscaler demand plateaus, or if power grid constraints slow data center buildouts, the debt underwritten on optimistic assumptions could face significant repricing. DoubleLine and Oaktree are essentially betting that at least some portion of this debt was priced for a perfect world.