Wellington Passes on Data Center Debt, Questioning Long-Term Value
About this episode
The episode discusses Wellington Management's concerns about data center debt and its long-term value, along with investment strategies in commercial real estate and AI disruption.
Data-center debt returns are falling, risk is rising and there’s uncertainty over what the properties may be worth in the long run, Wellington Management says. “We think a lot about that replacement value when evaluating data centers,” Sonali Wilson, the $1.3 trillion manager’s lead investment director for private credit, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s David Havens in the latest Credit Edge podcast. “Today, I’ll say — not every situation — but, by and large, it’s a pass,” she says. They also discuss commercial real estate investment strategies, how to position for AI disruption and why Wellington is building out a private-debt platform now. See omnystudio.com/listener for privacy information.
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