‘Animal Spirit’ coming into credit and public equity: Danantara CIO

Does it concern you though Papu when you look at this sudden increase in uh credit stress in some of the AI related hyperscaler uh credit markets and the debt cycle and where it is going? Are you concerned about disorderly defaults? Are you concerned about a credit event and the spill over >> into your portfolio on especially? >> It's a good question. We have been because we just started this year. We have been in a way underexposed to anything in a way related to AI. A lot of the business we invest are those that we can price we can value through price to earnings, dividend yield. So things that are I would say defensive. Uh we just started investing also abroad and there's obviously if you invest in the US, you will always get a little bit of AI, right? Because AI now probably makes up 50% of S&P 500. The question you asked is a good one today because now this concern is growing. I think AI the value is here to stay. In fact, I think the utility of it will continuously increase. But what you say because now there's a lot of I would say uh animal spirit coming in both in the credit side as well as on the public equity side. We just have to be careful. I think uh a couple of uh people that are observing the market say hey watch out it's coming you know but the way we look at it today if you look at capital formation especially in digital infrastructure you can still get doubledigit project return and that's important