transcript
show notes
Friday 7th August 2026
Please note this communication is not a research report and has not been prepared by NAB Research analysts. Read the full disclaimer here.
As massive capital expenditure pours into artificial intelligence, the narrative is rapidly shifting from speculative equity gains to a major structural opportunity across debt and credit markets. This week Phil is joined by NAB’s Head of Credit Strategy, Peter Fullerton, to explore why credit markets might offer a far safer, cash-flow-backed alternative to navigating a potential tech equity bubble. Peter explains that while tech hyperscalers are turning free cash flow negative to fund relentless CapEx—causing corporate debt spreads to widen—they still enter debt markets with resilient, high-grade balance sheets that shield bondholders far better than the dot-com era ever did. Closer to home, the focus turns to the physical infrastructure build-out: how Australia's expanding data centre footprint and transmission grid rollouts are creating high-yielding, long-tenor, investment-grade paper backed by tier-one tenants. Are equity markets ignoring the monetization wall ahead, and is local credit the smartest way to extract yield from the AI wave without risking the downside of an equity reckoning?
Hosted on Acast. See acast.com/privacy for more information.
