Goldman's Wheeler Says Volume of AI Debt May Pressure Spreads
TL;DR
The sheer volume of AI-related debt issuance could pressure spreads, according to Miriam Wheeler, global head of leveraged finance at Goldman Sachs. "If you look at the last couple weeks in the market on the non-IG [investment grade] side, we have seen some spread widening, particularly in the AI space," Wheeler tells Bloomberg Television. (Source: Bloomberg).
Nauti's Take
A credit market that finally prices AI risk separately is an opportunity: capital moves toward projects with real cash flow instead of every data centre announcement. The risk sits on the other side, because widening spreads in the non-investment-grade segment raise the cost of exactly the financing this build-out depends on.
Anyone holding AI equities or bonds should check operator leverage rather than watching revenue growth alone.
Summary
The sheer volume of AI-related debt issuance could pressure spreads, according to Miriam Wheeler, global head of leveraged finance at Goldman Sachs. "If you look at the last couple weeks in the market on the non-IG [investment grade] side, we have seen some spread widening, particularly in the AI space," Wheeler tells Bloomberg Television.
(Source: Bloomberg)
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