The credit market may have been content with record data center borrowing, but tech companies haven't stopped. Castle Securities predicts that by 2028, the public and private markets will issue more than $500 billion in debt to fund chips in artificial intelligence parks. Jeff Eason, an analyst in charge of the company's investment-grade trading desk, predicts that most of the issuance may be shorter — about three to five years — to match the life span of the chip, and some of them may be issued in the form of 144A private placement; this may become one of the biggest new areas of investment-grade credit, and the influx of supply may reshape investment-grade credit portfolios.
Zhitongcaijing · 1d ago
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The credit market may have been content with record data center borrowing, but tech companies haven't stopped. Castle Securities predicts that by 2028, the public and private markets will issue more than $500 billion in debt to fund chips in artificial intelligence parks. Jeff Eason, an analyst in charge of the company's investment-grade trading desk, predicts that most of the issuance may be shorter — about three to five years — to match the life span of the chip, and some of them may be issued in the form of 144A private placement; this may become one of the biggest new areas of investment-grade credit, and the influx of supply may reshape investment-grade credit portfolios.
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