Goldman Sachs Cuts Hyperscaler Exposure Amid AI Debt Surge

Goldman Sachs Asset Management's head of multi-sector fixed income investing, Lindsay Rosner, says the bank is underweight on hyperscalers due to a surge in debt issuance. The sector has seen a significant increase in borrowing from big Tech companies like Amazon.com Inc., Meta Platforms Inc., and Alphabet Inc., which have raised hundreds of billions of dollars for artificial intelligence projects.

Rosner believes that this trend will continue, stating 'We believe there will be a lot of hyperscaler issuance. For that sector at large we are underweight knowing more issuance will come.'

The bank's decision to go underweight on hyperscalers suggests that Rosner is concerned about the impact of increased debt issuance on the market.