Goldman Sachs Asset Management underweight large cloud service providers, expects bond issuance wave to continue.

Goldman Sachs Asset Management believes that with a large influx of new debt entering the market, the firm is currently underweight the companies with the largest AI-related borrowing, and expects hyperscale cloud service providers to issue debt on a large scale. Lindsay Rosner, head of multi-sector fixed income investing at Goldman Sachs Asset Management, said in a media television interview on Thursday: "We think hyperscale cloud service providers will issue a lot of bonds. We are overall underweight this sector because we know there will be more bond supply." Rosner said: "This situation has persisted throughout the year, with new bond issuance replacing existing bonds." Rosner said the underweight is mainly due to expectations that bond supply will remain high, rather than pessimism about the AI outlook. She said her team remains bullish on the "AI narrative," but also recognizes that more debt issuance could prompt the market to reprice.