Listen to how AI-driven capital spending is reshaping global credit markets—and what it means for investment grade, high yield, and private credit investors. We explore the rise in tech debt issuance, the risks of an AI credit bubble, and the evolution of credit markets if AI earnings fall short of expectations.

Welcome to Turning Points, Clearway Capital Solutions’ podcast series, where we talk to leading investment managers and general partners in their respective asset classes about the evolution of their markets, and how they are responding to these changes.

Clearway Capital Solutions is an independent and privately owned company, providing business development, placement and capital advisory services to investment managers in alternative and traditional asset classes, who are seeking to engage with Australian and New Zealand investors and their consultants. The Turning Points podcast series provides listeners with direct access to the insights of our partners.

Episode description

Today, we are joined by Bob Kricheff, Global Strategist and Head of Multi-Asset Credit from Shenkman Capital Management to discuss how the rapid build-out of AI infrastructure is reshaping credit markets—from investment-grade issuance by hyperscalers to emerging opportunities and risks in the non-investment-grade market.

The podcast is approximately 23 minutes in length and covers the following topics:

1. An introduction to Shenkman Capital Management (1:00 – 2:00)

2. Tech firms issuing debt to fund AI and the risks (2:03 – 5:55)

3. The learnings from Oracle’s debt issuance (5:57 – 7:54)

4. Hyperscalers and an AI credit bubble (7:55 – 9:28)

5. The risks in AI-linked high yield bonds (9:29 – 11:19)

6. Shenkman's thinking about AI related issuers (11:22 – 13:31)

7. The stresses likely to arise in high yield if AI earnings disappoint (13:32 – 15:23)

8. The risks to corporate credit from the adoption of AI (15:25 – 17:29 )

9. The impact on private credit of private equity led LBO issuance (17:32 – 19:51 )

10. The impact of US banks rescinding leverage lending guidance on private credit (19:53 - 21:28)

11. Final thoughts and changes for credit markets in 2026 (21:31 - 23:18)

The host for this episode is Dennis Mothoneos, Managing Director from Clearway Capital Solutions.

Shenkman Capital Management

Shenkman Capital is an independently owned corporation with a 39-year history of adhering to proprietary bottom-up fundamental credit research, process-driven rules-based decisions and the avoidance of defaults across their portfolios. Shenkman Capital offers leveraged loans (senior secured loans), high-yield bonds, short duration high yield bonds, multi-strategy credit, structured credit, and stressed/distressed credit approaches to investors. Shenkman Capital has a substantial client base in Australia.

Clearway Capital Solutions

Established in 2008, Clearway Capital Solutions is an independent and privately owned company, providing business development, placement and capital advisory services to investment managers in alternative and traditional asset classes, who are seeking to engage with Australian and New Zealand investors and their consultants.

For more information on Clearway Capital Solutions please contact us on: www.clearwaycapital.com.au