Fidelity Portfolio Manager Shuns Artificial Intelligence-Focused Bonds

Serdar HocamAuthor & Editor

Investment manager James Durance keeps his stake in tech bonds financing artificial intelligence investments below 2 percent due to rising risks.

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Fidelity’s Durance Is Shunning Tech Bonds Feeding the AI Boom

James Durance, working within Fidelity International, is taking a distant approach to tech bonds lending debt to the market to finance the artificial intelligence boom.

Distant Approach to Artificial Intelligence Bonds

Fidelity International portfolio manager James Durance is pursuing a strategy of keeping tech bonds that finance the artificial intelligence craze out of his portfolio.

Risk Concerns and Low Ratios

Managing $14 billion in assets from London, the experienced manager prefers to keep the technology share in income strategies below the 2 percent level due to risk concerns.

Future Borrowing Risks

It is stated that the sheer magnitude of the borrowing amount to be provided to the sector by the end of next year could in itself become a major risk.