Major U.S. technology companies are borrowing heavily to finance AI infrastructure, prompting some investors to view bonds from emerging-market peers as safer alternatives.
SK Hynix bonds maturing in 2031 now yield only 9 basis points more than Amazon bonds of the same maturity, about one-third of the gap seen a year ago. The cost of hedging SK Hynix credit risk is also lower than that of several U.S. tech giants, as emerging-market corporate bond risk premiums converge with comparable U.S. benchmarks for the first time.
AI Infrastructure Borrowing Narrows Credit Gap Between US Tech Giants and Emerging-Market Peers
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