Companies financing data center projects are increasingly turning to junk bond investors, even as investment-grade debt offers high yields.
Bloomberg Markets reports that companies financing data center projects are increasingly turning to junk bond investors to raise billions of dollars. For example, QTS Realty Trust this week sold $3.9 billion in bonds for a Microsoft-related facility in Georgia. Although these bonds were highly rated, they offered a yield of approximately 7.23%. Additionally, blue-chip securities sold by BlackRock in July for a data center project in Texas also provided a yield of 7.53%.
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