Rising costs of ai-linked debt

Lindsay Rosner, Head of Multi Sector Fixed Income at Goldman Sachs, and Milwood Hobbs, Deputy CIO Strategic Credit Platform at Oaktree Capital, discussed AI-related debt costs during a Bloomberg Real Yield interview on 2026-09-25. They highlighted rising debt tied to AI initiatives and tightening high-yield spreads. Rosner noted heightened risk, while Hobbs pointed to narrowing spreads as a sign of market caution. The conversation underscored evolving credit risk amid rapid technological advancement. Both stressed the importance of careful evaluation of AI-driven financial instruments. The interview revealed how the financial sector is adapting to increased AI borrowing. Rosner noted higher borrowing costs due to AI project demand, while Hobbs highlighted growing creditworthiness scrutiny. Experts warned of a more selective market, with investors demanding transparency and risk mitigation. Their remarks reflect heightened awareness of AI investment financial implications. As the financial landscape shifts, insights from Rosner and Hobbs highlight challenges and opportunities for AI sector investors. Their analysis underscores the need for a balanced approach to risk and return in an innovative, uncertain environment. The discussion offers valuable insight into evolving debt market dynamics amid AI-driven economic growth.