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AI companies now make up 14% of the high-grade market, surpassing US banks, and the analysts identified 75 companies across tech, utilities and capital goods sectors that are closely tied to AI. Debt investors are scrambling to get a piece of the pie, with companies linked to AI seeing their equity valuations skyrocket and debt investors competing to underwrite debt deals supporting the development of large data centers.
“Debt tied to AI companies is growing fast but it trades tight for good reasons,” wrote the analysts. They noted that most of these companies are high-quality issuers, either cash rich or not highly levered and are likely highly regulated, which justifies their outperfomance.
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