Goldman Sachs Group (GS) Asset Management is underweight the biggest AI borrowers as issuance floods the market, Bloomberg reported Thursday, citing an interview with Lindsay Rosner on Bloomberg TV.

Rosner, head of multi-sector fixed income investing at Goldman Sachs Asset Management, said the firm expects heavy hyperscaler bond issuance and is positioned underweight the sector as a result, according to the report. She said new issuance has been replacing existing issuance "all year long."

Hyperscalers have accumulated almost $3 trillion in off-balance sheet obligations, an important factor in assessing their creditworthiness, according to Moody's Ratings, cited by Bloomberg.

Rosner told Bloomberg the underweight call reflects expectations of heavy supply rather than pessimism on AI, saying her team believes "in the story of AI" but is "cognizant" that more borrowing could reprice the market.

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