This podcast discusses the growth of technology within the investment-grade debt market. The conversation begins by exploring the historical reasons for tech's small presence and the factors driving its recent expansion, including industry maturation and increased debt financing. The speakers then delve into the massive capital expenditures (CapEx) in AI, projecting a rise from $125 billion to over $300 billion by 2027, and examine the use of private credit solutions for funding these projects, noting a yield increase of 150-200 basis points compared to IG bonds. Finally, the macro environment and its influence on corporate decision-making, particularly regarding M&A activity, are analyzed. The podcast offers insights into the financial strategies of tech companies and the evolving landscape of investment-grade debt.
