Goldman Sachs said investment-grade (IG) credit’s traditional appeal of low-risk, diversified yield is being challenged as markets become increasingly tied to the AI capex cycle. The firm noted IG now carries equity-like exposure but with limited upside and more negative convexity, raising the question of whether investors will demand higher risk premiums over the next 12–24 months.

2026-05-06

Goldman Sachs said investment-grade (IG) credit’s traditional appeal of low-risk, diversified yield is being challenged as markets become increasingly tied to the AI capex cycle. The firm noted IG now carries equity-like exposure but with limited upside and more negative convexity, raising the question of whether investors will demand higher risk premiums over the next 12–24 months.