JPMorgan Says AI Borrowers Face Loan Scrutiny as CDS Spread Hits 1,100 Basis Points

JPMorgan said lenders require AI companies to prove they can fund investment, service debt and generate cash flow. It said stress is concentrated in borrowers reliant on continued debt access. One AI infrastructure borrower had a five year CDS spread of 1,100 basis points, implying a default probability near or above 50%. JPMorgan warned a deeper AI downturn could spill into bitcoin.