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Goldman Sachs Underweight Hyperscalers Amid Debt Supply Surge
M
Moneycontrol•25-09-2026, 08:44
Goldman Sachs Underweight Hyperscalers Amid Debt Supply Surge
- •Goldman Sachs Asset Management is underweight on major AI borrowers due to an anticipated flood of new debt issuance.
- •Lindsay Rosner, head of multi-sector fixed income investing, stated that more hyperscaler issuance is expected.
- •Big Tech companies like Amazon, Meta, and Alphabet have already issued hundreds of billions in bonds for AI projects this year.
- •Hyperscalers have accumulated nearly $3 trillion in off-balance sheet obligations, impacting their creditworthiness.
- •The underweight stance is based on expected heavy supply, not pessimism about AI, though increased borrowing could reprice the market.
Key Questions Answered
Goldman Sachs Asset Management is underweight on major AI borrowers due to expectations of heavy debt supply and a flood of new bond issuance washing over the market.
According to Moody's Ratings, large technology companies have accumulated almost $3 trillion in off-balance sheet obligations, which is a key factor when evaluating their overall creditworthiness.
Major technology firms including Amazon.com Inc., Meta Platforms Inc., and Alphabet Inc. have been among the largest sellers of high-grade corporate bonds to fund artificial intelligence projects.
