'The market has spoken': DBS CEO Tan Su Shan says market is repricing AI financing risks
DBS CEO Tan Su Shan stated that the market is currently repricing risks associated with AI-related investments. She noted that while this may lead to credit rating downgrades for weaker firms, it encourages healthier, more sustainable financing practices.
Why it matters
As capital flows heavily into AI infrastructure, market discipline is necessary to ensure long-term ROI and prevent systemic financial instability.
She notes that weaker firms may see their credit ratings revised downwards
[SINGAPORE] The market is repricing the risks around investments related to the buildup of artificial intelligence that could lead to more discipline in financing, according to DBS chief executive officer Tan Su Shan.
“The market has spoken,” Tan said in an interview with Bloomberg Television on Monday (Oct 12).
“It’s not a bad thing because now, people are asking for higher returns, and people are also looking at structures."
“They’re making sure that whatever money is now being hoovered into the whole AI capex ecosystem will lead to some kind of long-term ROI that can then be repaid back to debt or bond or equity holders.”
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