Corporate bond investors are becoming more selective toward debt issued by AI-linked companies as the sector's financing needs for data centres, chips and…
Corporate bond investors are becoming more selective toward debt issued by AI-linked companies as the sector's financing needs for data centres, chips and infrastructure accelerate, Reuters reported. AI-related corporate bonds were trading at spreads of roughly 115 basis points compared with about 78 basis points for the broader MarketDefinition A market is an environment where buyers and sellers come together to exchange assets, goods, services, or financial instruments. Prices form as buyers and selle...Read More. Hyperscaler debt issuance is projected to reach about $420 billion next year, roughly 60% above 2026 levels. The widening SpreadDefinition A spread is the difference between two related prices. In a standard forex quote, it usually means the gap between the bid and ask and therefore forms pa...Read More GapA gap is an area on a price chart where the next period begins at a price that is separated from the previous period's trading range, leaving little or no trading activity...Read More suggests credit investors are demanding more compensation as AI capital expenditure increasingly moves from cash balances toward debt markets.
