L&G Asset Management sees AI equity upside despite US$3 trillion debt concerns

‘We are defensive in terms of allocating to that particular sector,’ says Ben Bennett, L&G’s head of investment strategy in Asia

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Credit related to the AI sector could grow between US$500 billion and US$800 billion a year and reach nearly US$3 trillion by 2030, according to Ben Bennett of L&G Asset. Photo: Shutterstock

Published: 10:41am, 8 Dec 2025Updated: 12:39pm, 8 Dec 2025

British institutional investor L&G Asset Management is not perturbed by the rising debt issuance in the artificial intelligence sector, even as it sees opportunities in the equities of industry giants.

Credit related to the AI sector could grow between US$500 billion and US$800 billion a year and reach nearly US$3 trillion by 2030, according to Ben Bennett, head of investment strategy in Asia at the asset management firm known for its active fixed income strategies.

“We are defensive in terms of allocating to that particular sector,” said Bennett, whose firm manages some US$1.5 trillion of assets.

Mega fundraising deals in the AI sector are emerging rapidly amid an intensifying race, with Meta, Google and Oracle set to raise more than US$70 billion between them in the next few weeks.

Meta, Google and Oracle are set to raise more than US$70 billion between them in the next few weeks. Photo: EPA

Bennett, who expected a significant increase in the AI debt issuance pipeline, said he was “a little bit concerned about the supply”.

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