JPMorgan Asset Management's Priya Misra Talks Treasuries, Credit, Stocks | Bloomberg Talks

The credit market exhibits a stark divergence between "haves and have-nots" as the artificial intelligence boom drives massive capital expenditure. While the triple-C junk bond sector struggles with rising costs of capital, investment-grade "hyperscalers" like Meta, Alphabet, and Microsoft have successfully issued approximately $70 billion in debt over a single week. Priya Misra of JPMorgan Asset Management observes that despite higher new-issue concessions, these deals remain oversubscribed due to strong inflows into high-quality fixed income. Portfolio managers are increasingly treating AI as a specific risk factor, favoring established data centers with existing power and permits over highly levered new entrants. Treasuries currently serve as a critical hedge against equity volatility and potential economic slowing, providing a safe haven while the market monitors whether AI-related CapEx is nearing a peak.