BlackRock Bond CIO: High-Quality AI-Related Bonds More Attractive Than US Treasuries, Short-Term Single-A Corporate Bonds Yield Around 7%

Odaily: BlackRock Global Chief Investment Officer of Fixed Income Rick Rieder said in an interview with Bloomberg Television that the scale of debt financing driven by current AI infrastructure buildout is unprecedented, and that high-rated bonds issued to finance AI infrastructure such as GPUs and data centers are more attractive investments than long-term US Treasuries.

Rieder noted that as corporate bond issuance expands, the yield conditions on related bonds have become more favorable. Although the US 10-year Treasury yield has already exceeded 5%, investors can obtain a yield of about 7% by purchasing shorter-dated single-A corporate bonds while avoiding the duration risk of long-term Treasuries. He views the current market as an investment opportunity that may come only once in a generation.

Rieder said he prefers secured bonds issued by high-quality companies and assets capable of generating cash flow, and believes that valuations of stocks in the semiconductor and computing sectors remain at reasonable levels. (Yonhap)