Market Trends and Investment Opportunities - Capital markets are experiencing a generational capital expenditure (Capex) wave driven by digital infrastructure and artificial intelligence, pushing fixed income yields higher across the board [24][25] - Diversified income strategies are currently yielding approximately 7.5% without taking undue credit risk [26] - Hyperscaler exposure currently accounts for around 5% of the investment grade corporate bond index, with expectations to grow to 10% or slightly higher [19] - Focused portfolios may allocate between 10% and 15% to these AI ecosystem and digital infrastructure risks [20] Digital Infrastructure Lending and Risks - Data center and chip financing deals require massive capital commitments, ranging from 10 billion to 25 billion US dollars in debt to build out individual data centers [5] - Lending opportunities in digital infrastructure offer high single-digit yields, specifically between 7% and 9% for strong investment grade quality [3] - Asset managers face AI concentration and disruption risks, requiring rigorous credit underwriting and detailed document scrutiny, such as verifying rapidly depreciating Nvidia chip assets [8][11][12][13] - Major hyperscalers like Google, Microsoft, and Meta maintain very low gross debt to enterprise value ratios, sitting in the low to mid single digits, providing a strong equity cushion [16] Below Investment Grade and Traded Leveraged Loans - Single B leveraged loans are currently offering yields between 8.12% and 9.12% (8.12% to 9.12%) on resilient and diversified liquid profiles [29] - Yields in below investment grade space are driven higher by direct lending volatility, software sector disruption concerns, and a general rise in yields [30][31][32]

When when you're doing a data center financing, by how much is that data center insured. You're generally not insuring 100% of the value of the data center, but you're you're insuring some significant portion of the data center that gives uh ultimately that gives the lender u protection or things like in chip financing. These are very detailed elements, but you you really have to get into the granularity of these things.in chip financing. Do you have the right on day one when you lend uh the money out to go ...