Summary

Goldman Sachs Asset Management Co-Head of Private Credit James Reynolds joins with his outlook for the private credit space and where he's finding opportunity right now. Then, we speak to Randy Mastro, the lawyer representing a group of New York City homeowners suing over the rollout of Mayor Mamdani's pied-à-terre tax. Plus, we bring you the details of I…

Key takeaways

• Intel's $15B equity offering (vs. debt) signals AI infrastructure demand has outpaced self-funding capacity, with CapEx guidance above $20B and negative free cash flow forcing public market capital raises to protect its near-junk credit rating.
• Meta's pivot back to open-source AI (Llama/Muse Glimmer) is strategically designed to win the consumer AI race by keeping users engaged on its 4B+ user platforms and selling more ads—not competing directly with OpenAI/Anthropic in frontier models.
• Private credit default rates are ticking up to recent highs (~2% industry-wide, five-year highs for some BDCs), but Goldman Sachs reports only 0.1% non-accruals, highlighting growing dispersion between managers and raising questions about sector-wide underwriting quality.

Why this matters

The AI capital cycle is forcing a structural shift in how tech and infrastructure companies finance growth—moving from self-funding and debt to public equity and private credit—creating new risk and opportunity across asset classes that B2B investors and corporate strategists must actively monitor.

Entities

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Show notes

Goldman Sachs Asset Management Co-Head of Private Credit James Reynolds joins with his outlook for the private credit space and where he's finding opportunity right now. Then, we speak to Randy Mastro, the lawyer representing a group of New York City homeowners suing over the rollout of Mayor Mamdani's pied-à-terre tax. Plus, we bring you the details of Intel's new $15 billion stock offering and Meta's new AI model. Squawk on the Street Disclaimer Hosted by Simplecast, an AdsWizz company. See pc

Themes

• ai
• investing