Goldman Sachs Underweights Hyperscalers Amid Rising Debt Issuance
Goldman Sachs' asset management division is reducing its exposure to major AI-driven hyperscaler companies due to an anticipated surge in corporate debt issuance. Lindsay Rosner, head of multi-sector fixed income at the bank, highlighted concerns over a flood of new bonds from these tech firms as they ramp up spending on artificial intelligence infrastructure. The move reflects growing caution among institutional investors about potential risks associated with high levels of borrowing by hyperscalers like Meta (NASDAQ: META) and others. Goldman Sachs is positioning its portfolio to mitigate exposure amid uncertainty around the sustainability of this debt-driven growth strategy in a potentially tighter credit environment.
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Topics: AI asset management debt issuance hyperscalers