Nathaniel Rosenbaum 5.0 2 ideas

"It is the hyperscalers that are funding to fund capex plans... This is incredibly high quality debt coming reasonably cheap to comparables. And so that is improving their credit quality over the overall market. For example, the AA portion of our market is the largest it has been in about seven years." Mega-cap tech companies are issuing massive amounts of debt to build out AI infrastructure. Because these companies have fortress balance sheets, their issuance is increasing the overall safety and quality of the investment-grade corporate bond market, making it an attractive yield vehicle. Long high-grade corporate bond ETFs to capture safe yield backed by cash-rich tech monopolies. If inflation remains sticky due to energy shocks, the Fed may hold rates higher for longer, causing duration risk and price depreciation in corporate bond ETFs.