Jeffrey Sherman on AI Debt Issuance and the Stress in Triple C | Bloomberg
It offers a manager's view on AI-related credit issuance and stress in lower-rated credit, two areas wealth professionals may need to understand when assessing credit exposure. The description also outlines how DoubleLine describes its own positioning as prices have moved.
Summary
By our deskDoubleLine Deputy CIO Jeffrey Sherman joins Bloomberg TV's Real Yield to discuss the credit market's response to a wave of AI-related debt issuance. He says hyperscalers have every incentive to keep borrowing and plenty of ways to do it, so higher funding costs have not slowed them yet. Sherman also discusses DoubleLine's positioning and triple C stress.
- Sherman discussed the credit market's response to AI-related debt issuance.
- He said hyperscalers have every incentive to keep borrowing and plenty of ways to do it, so higher funding costs have not slowed them yet.
- DoubleLine was very underweight the sector when spreads looked too tight.
- He said DoubleLine has started to nibble at select bonds as prices have fallen, and on triple C stress said history suggests it spreads, but 'so far so good.'
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