Investors use bond market to hedge against AI risks, says PGIM executive
Investors are using the bond market to hedge against potential risks and uncertainties surrounding the rapid expansion of artificial intelligence, according to PGIM's Greg Peters.
Some market participants are turning to fixed income instruments to mitigate exposure to potential risks in the artificial intelligence sector, according to Greg Peters, co-chief investment officer at PGIM.
Speaking on Bloomberg Surveillance, Peters highlighted that growing uncertainty around the sustainability and pace of the AI expansion has prompted investors to use the bond market as a risk-mitigation tool.
Additionally, Peters noted that political developments, including future U.S. midterm election results, could influence regulatory environments and policy outcomes, potentially altering the speed of corporate capital expenditure for AI infrastructure.
Sources: Bloomberg.