AI-related borrowing has surged substantially in low-rated U.S. firms this year, prompting investor scrutiny of financial assumptions. Lenders are seeking higher returns and greater compensation for the risks associated with these investments. While there is demand for predictable revenue streams, appetite for lower-quality AI credit remains limited. Borrowing costs have increased sharply as borrowers move further down the credit spectrum, impacting financing availability.
Read more at the source
Disclaimer: The content of this post is sourced from external sites and is for informational purposes only. All rights and credits belong to the original authors and publishers.