The AI investment boom is no longer just an equity story. As hyperscalers ramp up spending and increasingly turn to bond markets for funding, Amy Xie Patrick explains why credit investors are paying closer attention to the risks behind the build-out.

Using a simple framework of demand, delivery and dollars, Amy explores where the pressure points are emerging across hyperscalers, data centres and neoclouds, and why not every part of the AI ecosystem carries the same risk.

She also explains why active credit selection and understanding exactly what you own are becoming increasingly important as AI-related debt issuance grows.

Here is an excerpt from the podcast:

"When free cash flow falls negative, we start to worry about pretty much the same things that the equity market worries about, right? And so here, I would probably sum it up in a neat little three D's: demand, delivery, and dollars.

“As long as we can see in front of us that there is sufficient demand that this capex is being built for, as debt investors, all we really need to be preoccupied with is: can they service their debt very credibly and comfortably?

“Being discerning and knowing exactly what you're buying and choosing what to buy rather than being told by a benchmark what to buy, is probably the most important thing.”

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