🎙️ podcast Analysis January 23, 2026 Odd Lots

Blackstone Credit: Private Credit Expansion Into Investment Grade AI Infrastructure

Alternative Asset Management Private Credit
Tickers
1 Pick
Conviction MEDIUM
Risk Profile 2.6/10 (MODERATE RISK)
Horizon 12-18 months
Signal Snapshot Core Theme: Private Credit

Private credit bubble concerns fading amid tight spreads

Investment grade expansion offers safer growth with maintained spreads

AI infrastructure financing; default rate validation

Executive Summary

Blackstone's Global CIO Michael Zawadzki reveals the firm has grown from zero to over $500 billion in credit assets by creating a "farm-to-table" lending model that eliminates traditional banking intermediaries. The most significant development is private credit's expansion into investment grade territory, driven by AI infrastructure financing needs. Morgan Stanley estimates $800 billion in private credit will be required for digital infrastructure buildout over five years. Zawadzki emphasizes t...

Key Investment Opportunity

Investment Grade Private Credit Expansion

Blackstone's move into investment grade private credit represents sector maturation and reduced risk profile while maintaining spread premiums over public markets

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