L&G’s Matthew Rees, Enda Mulry, Amélie Chowna and John Daly outline how unconstrained bond investors can navigate a looming wave of AI-linked issuance and its spread implications.
-
Hyperscalers could spend ~$7tn in AI capex by 2030, implying $500–800bn in extra debt issuance annually.
-
Record tech issuance is already pressuring spreads: the US IG tech index has lagged US aggregate credit since May 2025, with ~$100bn tech debt issued in Q4 2025 alone.
-
L&G stays cautious on IG credit at compressed spreads, preferring subordinated bank debt and selective EM exposure where fundamentals look comparatively stronger.
Explore the full article for funding scenarios, primary/secondary opportunities and the case for active credit selection.
Om dit artikel te lezen heeft u een abonnement op Investment Officer nodig. Heeft u nog geen abonnement, klik op "Abonneren" voor de verschillende abonnementsregelingen.
