{"id":163581,"date":"2025-12-02T02:05:07","date_gmt":"2025-12-02T02:05:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/163581\/"},"modified":"2025-12-02T02:05:07","modified_gmt":"2025-12-02T02:05:07","slug":"the-ai-trade-with-a-lot-of-upside-not-much-downside-strategist","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/163581\/","title":{"rendered":"The AI trade with &#8216;a lot of\u00a0upside&#8217;, &#8216;not much downside&#8217;: Strategist"},"content":{"rendered":"<p>Convertible bonds are a way to play bet on AI with less risk, according to one strategist. Schroders&#8217;\u00a0head of multi-asset income\u00a0Dorian Carrell\u00a0said convertible bonds were an asset class &#8220;people don&#8217;t talk about enough&#8221; and were up around 15% so far this year. &#8220;We think that&#8217;s an asymmetric AI story.\u00a0Very high\u00a0risk-return,\u00a0very high\u00a0components of supply chain and AI, but you get a lot of\u00a0upside\u00a0with not much downside,&#8221; he told CNBC&#8217;s &#8220;Squawk Box Europe&#8221; on Monday. Convertible bonds are corporate bonds that can be converted into company shares, meaning they have the features of a regular bond but with an equity\u00a0component. It has been a rollercoaster few weeks in global equities, as the push and pull between\u00a0economic data,\u00a0earnings\u00a0and AI-fueled bubble fears\u00a0played\u00a0out in the markets.\u00a0There has been an uptick in tech firms issuing debt, which added further pressure on the market\u00a0&#8212;\u00a0whether\u00a0it&#8217;s healthy or not has split\u00a0experts. While Carrell didn&#8217;t name specific stocks, big tech firms Alphabet , Meta and Amazon are among those that have raised debt to ramp up AI efforts. Oracle, too, has been increasingly reliant on debt to fund its AI infrastructure build; analysts have flagged its tight free cash flow as investors keep an eye on how such companies are net cash positioned. Carrell said that\u00a0&#8220;Europe looks like a beacon of stability&#8221; given its\u00a02% rates\u00a0and\u00a02% inflation\u00a0&#8220;give or take,&#8221;\u00a0while\u00a0for AI\u00a0&#8220;the picks and shovels are much cheaper in Asia, including a little bit in Japan as well.&#8221; He added:\u00a0&#8220;So\u00a0we think\u00a0you&#8217;ve\u00a0got to look elsewhere.\u00a0You&#8217;ve\u00a0got to broaden out by asset class, broaden out by region as well.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"Convertible bonds are a way to play bet on AI with less risk, according to one strategist. Schroders&#8217;\u00a0head&hellip;\n","protected":false},"author":2,"featured_media":163582,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[365,2709,363,364,2339,553,107258,220,5745,111,139,69,145],"class_list":{"0":"post-163581","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-alphabet-class-a","10":"tag-artificial-intelligence","11":"tag-artificialintelligence","12":"tag-breaking-news-markets","13":"tag-business-news","14":"tag-fresh-vine-wine-inc","15":"tag-markets","16":"tag-meta-platforms-inc","17":"tag-new-zealand","18":"tag-newzealand","19":"tag-nz","20":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/163581","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=163581"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/163581\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/163582"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=163581"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=163581"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=163581"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}