Debbie Cunningham, chief investment officer of Federated Hermes' $677 billion money market fund, said that loans from artificial intelligence companies may actually create demand for US debt. Cunningham said that when hyperscale cloud service providers such as Alphabet, Microsoft, and Meta raise capital, they don't spend it all at once, but instead deposit large amounts of cash into money market funds. And what do these funds invest in? US Treasury Bonds. Cunningham also said that even if more lenders set their sights on artificial intelligence companies, demand for US debt would continue. Subject to fund authorization, collateral rules, and other factors, investors must invest in US government bonds. Cunningham said, “Most people who hold US Treasury bonds and treasury bonds have to hold them.”
Zhitongcaijing · 1d ago
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Debbie Cunningham, chief investment officer of Federated Hermes' $677 billion money market fund, said that loans from artificial intelligence companies may actually create demand for US debt. Cunningham said that when hyperscale cloud service providers such as Alphabet, Microsoft, and Meta raise capital, they don't spend it all at once, but instead deposit large amounts of cash into money market funds. And what do these funds invest in? US Treasury Bonds. Cunningham also said that even if more lenders set their sights on artificial intelligence companies, demand for US debt would continue. Subject to fund authorization, collateral rules, and other factors, investors must invest in US government bonds. Cunningham said, “Most people who hold US Treasury bonds and treasury bonds have to hold them.”
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