Investors Turn More Selective as AI Companies Flood Bond Market
4 Articles
4 Articles
The 10-year U.S. Treasury bond yield exceeded 5% and reached levels not seen since 2007, raising the reference cost to fund data centers just when the industry projects massive investments to meet artificial intelligence demand. Some lenders begin to more rigorously select which projects they support, although several companies remain willing to pay more to secure capacity.
The artificial intelligence (AI) investment craze is becoming a new variable in the U.S. long-term bond market as well.
Investors Turn More Selective as AI Companies Flood Bond Market
The corporate bond market is showing a growing divide between AI-related issuers and more traditional companies, with investors demanding greater concessions from some technology borrowers as expected debt issuance rises.
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