Summary

• Most of the hyperscalers are very high-quality credits -- Microsoft (MSFT), Amazon (AMZN), Google (GOOGL). They're all AA rated.
• Most of the hyperscale issuers are investment grade. So they're not really funding directly to the high yield market.
• The loans and the private debt that's struggling, those are more private type credits that the equity markets don't really see.

The buildout of AI has led to record-setting bond issuances in Canada, which is causing some “indigestion” in the markets and impacting more traditional issuers, says Benjamin Chim, Head of Credit with TD Asset Management.