Bank of America credit traders feel impact of cautious AI strategy

When your competitors are gorging on a $400 billion buffet and your boss has you on a strict diet, the mood at the trading desk tends to suffer. That’s roughly the situation at Bank of America, where credit traders are grappling with the consequences of the bank’s deliberate choice to avoid many of the blockbuster AI-related debt deals that have defined Wall Street’s 2026.

Companies have collectively issued more than $400 billion in bonds tied to artificial intelligence infrastructure this year. That flood of new paper has created a thriving secondary market, with investors actively trading the expanded supply. BofA’s credit desk, however, hasn’t been able to fully ride that wave, because the bank chose to sit out several of the most prominent deals its rivals jumped on.

The cost of saying no

BofA’s trading revenue has remained flat even as the AI debt bonanza has lifted results at competing banks.

The bank’s restraint isn’t accidental. CEO Brian Moynihan has built his tenure around the philosophy of “responsible growth,” a framework that prioritizes human oversight and careful risk assessment over chasing every hot trend.

BofA hasn’t avoided AI financing entirely. The bank has participated in select data-center and infrastructure projects, including deals connected to Oracle. But its participation has been surgical where competitors have been aggressive, choosing specific transactions rather than positioning itself as a go-to underwriter for the broader AI infrastructure buildout.

The result: traders at the bank have less inventory to work with, fewer client flows to capture, and a shrinking share of a market that’s only getting bigger.

Responsible growth vs. market share

Moynihan’s cautious posture reflects a genuine strategic calculation, not just timidity. AI infrastructure debt is a relatively new asset class, and the long-term credit quality of some issuers remains untested. Data centers carry operational risks. Power contracts can be volatile.

The tension between risk management and competitive positioning is as old as banking itself. BofA’s current stance puts it on the conservative end of the spectrum at a moment when the market is rewarding boldness.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.