Anna Rathbun

Good morning.

I do think it's smart.

I mean, sometimes cash on hand is the most powerful thing.

And so it doesn't make sense to spend all of your cash and put it into the future investment in AI.

Sometimes it makes sense to borrow from the debt market and to finance it so that you have some leeway and some flexibility in what you want to do with the assets that you have.

Yeah, I think so.

Private credit market is constantly looking for ways to deploy their capital that they're getting from the investors.

And right now, the investment that seems the most exciting seems to be this data center and AI play.

And if we heard

from Microsoft and others last week during the earnings call, the demand is just out of this world and they're having a hard time supplying that demand.

Therefore, I think you're going to see more of it.

By the way, people are worried about this off-balance sheet financing.

In my opinion, it's dangerous if you don't know about it, but everyone knows about it.

You can definitely put that into your calculation for the valuations of these companies.

Yeah.

With regards to meta, I think there were a lot of things that were idiosyncratic.

I mean, if we were to think about the cap stack, if debt is issued, equity investors don't like it.

Right.

But if you look at the debt market, a lot of investors in the debt market actually liked it and there was a lot of demand for it.

But there was also the deal about Meta not being a hyperscaler.