Hartnett Sees Opportunity in Beaten-Down Technology Bonds

Bank of America strategist Michael Hartnett sees potential value in beaten-down technology debt as borrowing tied to artificial intelligence pushes yields higher. The view follows Hartnett’s earlier warnings about AI-related credit stress. He highlighted distressed CoreWeave bonds and five-year credit default swap pricing that implied about a 63% default probability. That figure was a market-implied measure, not an actual default rate. The AI credit market had also recorded its weakest week of the year. Hartnett’s latest view centers on technology bonds, while his earlier comments addressed risks to the broader technology trade.

Source: TokenPost