According to Yonhap News, Rick Rieder, BlackRock, the world’s largest asset manager’s Chief Investment Officer for Global Bonds, stated that the scale of debt financing recently undertaken to expand AI infrastructure has been unprecedented, and the related bonds are more attractive than U.S. long-term Treasuries. In an interview with Bloomberg Television on October 27, Rieder said the scale of financing in both bond and equity markets has never been seen before, and he considers the current period the most attractive investment environment he has ever experienced.
He expressed interest in high-quality bonds issued to finance GPUs, data centers, and other AI infrastructure, noting that the large scale of new corporate bond issuances has led to more favorable interest rate conditions than in the past. He pointed out that although the U.S. 10-year Treasury yield exceeds 5%, it has been marginalized by other market instruments and is now largely viewed as a "market benchmark" for equities; investors can achieve approximately 7% yields by purchasing short-duration single-A rated bonds while avoiding the duration risk associated with long-term Treasuries.
He also expressed a preference for secured bonds issued by high-quality companies or assets that generate cash flow, and believes that valuations for stocks in the semiconductor and computing sectors are reasonable. Currently, hyperscale data center operators are issuing the largest corporate bonds in history, raising hundreds of billions of dollars and absorbing funds that would otherwise flow into U.S. Treasuries, becoming one of the primary factors driving up U.S. Treasury yields. Global financing for high-quality AI-related projects has already exceeded $300 billion this year, approximately three times the total for all of last year.
BlackRock CIO: High-Quality AI Bonds Outperform U.S. Treasuries
TechFlowShare
Summary
BlackRock’s Rick Rieder said high-quality AI bonds are now outperforming U.S. long-term Treasuries. He highlighted record financing for AI infrastructure—including GPUs and data centers—with bond issuance offering higher yields. Rieder favors secured bonds and cash-generating assets, emphasizing the long-term investment potential in the sector. Hyperscale operators are issuing record levels of debt, drawing capital away from Treasuries and pushing bond yields higher. Global AI financing has already reached $30 billion this year, triple last year’s level. Support and resistance levels in the market are shifting as investors reallocate toward higher-yielding alternatives.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.