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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This podcast has been prepared by Pendal Fund Services Limited (PFSL) ABN 13 161 249 332 AFSL 431426 and is current as at 4 November 2026. 

Any views and opinions expressed are those of the investment team as at the date of recording and are subject to change without notice. Any forecasts, estimates or forward-looking statements are based on information and assumptions considered reasonable at the time. Actual outcomes may differ materially.

It is general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. You should consider whether the information is suitable for your circumstances and we recommend that you seek professional advice.

The product disclosure statement (PDS) for the Pendal Monthly Income Plus Fund (Fund), issued by PFSL, should be considered before deciding whether to acquire, dispose, or hold units in the Fund. The PDS and Target Market Determination can be obtained by calling 1300 346 821 or visiting our website www.pendalgroup.com.

This podcast may contain information contributed or prepared by third parties. Any information contributed or prepared by third parties is believed to be accurate as at the time of compilation and is being provided in good faith without independent verification. PFSL does not warrant the accuracy or completeness of any information provided by a third party.

To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. No company in the Perpetual Group (Perpetual Limited ABN 86 000 431 827 and its subsidiaries) guarantees the performance of any fund or the return of an investor’s capital. All investing involves risk including the possible loss of principal.

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.
&ldquo;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?
&ldquo;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.&rdquo;
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Learn more about <a href="https://pendalgroup.com/products/pendal-monthly-income-plus-fund">Pendal Monthly Income Plus Fund</a>
Learn more about <a href="https://pendalgroup.com/">Pendal</a>
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This podcast has been prepared by Pendal Fund Services Limited (PFSL) ABN 13 161 249 332 AFSL 431426 and is current as at 4 November 2026.&nbsp;
Any views and opinions expressed are those of the investment team as at the date of recording and are subject to change without notice. Any forecasts, estimates or forward-looking statements are based on information and assumptions considered reasonable at the time. Actual outcomes may differ materially.
It is general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. You should consider whether the information is suitable for your circumstances and we recommend that you seek professional advice.
The product disclosure statement (PDS) for the Pendal Monthly Income Plus Fund (Fund), issued by PFSL, should be considered before deciding whether to acquire, dispose, or hold units in the Fund. The PDS and Target Market Determination can be obtained by calling 1300 346 821 or visiting our website <a href="https://www.pendalgroup.com">www.pendalgroup.com</a>.
This podcast may contain information contributed or prepared by third parties. Any information contributed or prepared by third parties is believed to be accurate as at the time of compilation and is being provided in good faith without independent verification. PFSL does not warrant the accuracy or completeness of any information provided by a third party.
To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. No company in the Perpetual Group (Perpetual Limited ABN 86 000 431 827 and its subsidiaries) guarantees the performance of any fund or the return of an investor&rsquo;s capital. All investing involves risk including the possible loss of principal.

Perpetual Group is an international asset manager including boutiques such as Perpetual, Pendal, Barrow Hanley, Regnan and Trillium. Each week our portfolio managers share the most interesting things they've heard from CEOs, industry leaders and analysts.

Perpetual Group is an international asset manager including boutiques such as Perpetual, Pendal, Barrow Hanley, Regnan and Trillium. Each week our portfolio managers share the most interesting things they've heard from CEOs, industry leaders and analysts.