Ray Dalio warns the market is heading for a $4.4 trillion fight for capital that could send borrowing costs surging

Billionaire investor Ray Dalio has warned that the market is heading for a $4.4 trillion fight for capital that could send borrowing costs surging. Dalio, founder of Bridgewater Associates, said he is increasingly nervous about the direction of bond yields and borrowing costs, with his bearish thesis centred on AI hyperscalers and governments competing for investor capital. He said the supply of debt will likely rise from about $3.5 trillion annual net debt supply in 2025 to about $4.4 trillion in 2027, an incremental increase of roughly $0.5 trillion per year, not including debt rollovers. Dalio described the corporate debt market as the canary in the coal mine.

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