00:00It's Benzinga bringing Wall Street to Main Street
00:02The market for highly-rated corporate debt is splitting, as investors grow more cautious
00:06about bonds from AI-related companies while bidding aggressively for debt from traditional
00:11issuers, according to Reuters.
00:12Hyperscalar debt issuance is expected to reach a record $420 billion next year, up 60 percent
00:18from 2026 estimates, according to Goldman Sachs.
00:22Investors say the widening spreads reflect heavy and unpredictable borrowing for data
00:26centers, chips, and AI infrastructure, rather than concerns about credit quality.
00:31AI-related issuers are trading at spreads of about 115 basis points, compared with 78
00:37basis points for the broader investment-grade market.
00:40Investors are also weighing concentration risk and keeping capital available in case hyperscalar
00:45spreads widen further.
00:46For all things money, visit Benzinga.com.
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