This post was originally published on this site.The shift from public bond issuance to bespoke private financing suggests the cost of the AI buildout is outrunning what traditional debt markets can comfortably absorb, which puts private credit giants at the centre of the next phase of spending. For chipmakers such as Broadcom and Nvidia, lender-backed purchases support demand visibility well beyond what buyers could fund from their own balance sheets. Off-balance-sheet lease structures may ease pressure on borrowers’ credit metrics, but they also obscure true leverage, which credit investors are likely to scrutinise as deal sizes grow. Any wobble in...

This post was originally published on this site.For equities, Goldman’s read favours the bottleneck rather than the end user: companies supplying power generation, transmission, grid modernisation and high-voltage equipment hold pricing power while capacity stays scarce. Multi-year order books give these names unusually long revenue visibility, though execution slippage is now the main risk to earnings delivery. A broadening industrial recovery argues against treating the sector purely as an AI proxy, while construction exposure tied to commercial and residential markets still looks the weaker side of the trade. In defence, European manufacturers able to lift output are best placed, while...