Morgan Stanley sees an attractive entry point in high-quality bonds issued by major data center operators as investors remain wary of the debt financing the artificial intelligence build-out. Credit spreads are expected to remain wider and become more volatile for lower-quality bonds as debt concerns intensify. CoreWeave, whose bond yield topped 16% earlier this month, reassured investors by beating revenue expectations and raising its full-year guidance. Major data center operators remain well capitalized, while Morgan Stanley forecasts AI-related capital expenditures of $1.66 trillion in 2027 and $1.77 trillion in 2028.
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