Goldman Sachs Goes Underweight on Big Tech AI Borrowers Amid Issuance Surge

Goldman Sachs Asset Management's head of multi-sector fixed income investing, Lindsay Rosner, has expressed caution about big tech companies, particularly those focused on artificial intelligence.

The reason for this underweight position is due to a surge in issuance from these hyperscalers, with almost $3 trillion in off-balance sheet obligations accumulated by them, as per Moody's Ratings.

Rosner stated that the bank's asset management arm believes 'in the story of AI' but is aware that increased borrowing could lead to market repricing. She emphasized that this underweight call reflects expectations for heavy supply rather than pessimism about AI.