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Long-term debt bets on technology companies that are borrowing heavily for AI may end in tears, according to Newfleet Asset Management. “It’s one of the biggest risks out there,” said Dave Albrycht, the multi-sector fixed income manager’s president and chief investment officer. “There’s no free lunch in the bond market,” he tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Arnold Kakuda in this episode of the Credit Edge podcast. Besides investment-grade companies borrowing to fund equity-like risk, they discuss the risk of Oracle falling to junk, why asset-backed securities are a hedge and how leveraged loans will be worth buying when the Federal Reserve stops cutting rates.

<p>Long-term debt bets on technology companies that are borrowing heavily for AI may end in tears, according to Newfleet Asset Management. &ldquo;It&rsquo;s one of the biggest risks out there,&rdquo; said Dave Albrycht, the multi-sector fixed income manager&rsquo;s president and chief investment officer. &ldquo;There&rsquo;s no free lunch in the bond market,&rdquo; he tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Arnold Kakuda in this episode of the Credit Edge podcast. Besides investment-grade companies borrowing to fund equity-like risk, they discuss the risk of Oracle falling to junk, why asset-backed securities are a hedge and how leveraged loans will be worth buying when the Federal Reserve stops cutting rates.</p>

The Credit Edge reviews the top credit news of the week and looks at the week ahead, with in-depth research of the most important corporate sectors, trends and themes. Analysis of specific corporate bonds and credit default swaps is backed by Bloomberg Intelligence's robust data sets and indexes.

<p>The Credit Edge reviews the top credit news of the week and looks at the week ahead, with in-depth research of the most important corporate sectors, trends and themes. Analysis of specific corporate bonds and credit default swaps is backed by Bloomberg Intelligence's robust data sets and indexes.</p>

The Credit Edge by Bloomberg Intelligence

Newfleet Warns of ‘No Free Lunch’ in AI Debt Funding Frenzy

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/86c73d39-f722-476d-8b80-b3b7010ebac6/transcript

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