What do AI-driven capital raises and rising money supply mean for investors?
Fortress Chief Investment Strategist Elizabeth Burton joined Carl Quintanilla on CNBC Overtime to break down the recent headlines.
Key takeaways from Elizabeth’s conversation:
- AI capital raises – issuers will need to show returns on capex; the volume of AI-driven supply is impacting the broader markets
- Inflation watch – money supply growing at a 7% annualized rate over the past three months is a set-up for potentially higher inflation by year end
- Positioning ideas – hedge against higher rates with floating-rate credit, infrastructure; and find durable thematic ideas like defense tech
- Private credit – a big bucket with room to play both defense (senior secured, first lien) and, if the cycle turns, offense (distressed, special situations)
