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AI credit markets face uncertain returns for investors, Andromeda warns

Andromeda Capital Management says investors funding AI capex face limited upside and significant downside given unclear ROI prospects.

Reported · Written up by our desk · Sectors

MarketWatch highlights concerns from researchers at Andromeda Capital Management about the risk-reward profile in AI credit markets.

The firm argues that financing the AI capex cycle is offering investors uncertain returns, with what it characterizes as almost no upside and plenty of downside.

According to the report, the core issue is the difficulty of assessing how the AI investment boom will translate into dependable payoffs for those providing credit to support it.

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