DoubleLine, Oaktree Buy Debt for $1 Trillion AI Credit Bust
Updated
Updated · Bloomberg · Jun 6
DoubleLine, Oaktree Buy Debt for $1 Trillion AI Credit Bust
1 articles · Updated · Bloomberg · Jun 6
Summary
DoubleLine Capital and Oaktree Capital are buying debt they expect to hold up if the AI financing boom turns into a credit downturn.
Robert Cohen, a portfolio manager at DoubleLine, said bond prices and valuations are not yet frothy but are likely to reach those levels in coming months or years.
The firms are positioning for that shift as technology companies are expected to pour trillions of dollars into AI, raising the risk that heavy borrowing could later strain credit markets.