Hua Er Jie Jian Wen·2025-11-07 00:10Group 1 - DoubleLine Capital warns fixed income investors to exercise caution when financing the AI investment boom, citing uncertainty in profitability of large capital projects and potential chain risks for related industries like power and chemicals [1][2] - Technology companies are driving a wave of AI investment borrowing, with significant bond issuances such as Alphabet's $17.5 billion in the U.S. and $6.5 billion (approximately $7.48 billion) in Europe, as well as Meta Platforms raising $30 billion [1][3] - Despite concerns, there is expected to be strong demand from fixed income investors for technology sector debt due to overall supply shortages in the credit market [1][3] Group 2 - Morgan Stanley predicts that large-scale cloud computing companies will invest approximately $3 trillion in infrastructure projects by 2028, with about half of this funding needing to be raised through debt [3] - Cohen expresses skepticism about private credit, indicating that its liquidity and transparency are inadequate to provide sufficient extra returns for investors [4] - Some clients of DoubleLine who invested heavily in private debt are disappointed with returns and are now seeking alternative investment options to diversify their exposure [4]