As companies look to bond markets to fund AI investment, the credit impact is showing up in more selective ways, creating opportunities for active investors.
Markets are being tested on several fronts at once. But the important question is how these shocks travel—through inflation, monetary policy, funding conditions, or issuer fundamentals. That’s where resilience begins to diverge.
The securitized credit market has evolved, through economic cycles and crises, into a popular fixed income allocation. However, its breadth, relative youth, and perceived complexities can be challenging for new investors, causing them to miss out on the asset class’s opportunities. Here’s what you need to know.
The first phase of the AI trade rewarded broad calls: “Buy power!” “Sell software!” The next phase will require much more discrimination across business models, capital structures, and industries.