Veytics Intelligence
2026-10-31 · Yahoo

Tech Bonds Are 'Diamonds in the Rough': Bank of America's Hartnett Says

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Bank of America's top strategist has found value in an unloved corner of the AI trade: the bonds of the companies paying for it. "Buy tech bond 'diamonds-in-rough' as AI hyperscalers up equity issuance, cut buybacks," Michael Hartnett, chief investment strategist at Bank of America, said in his latest Flow Show note. The call comes after a punishing year for tech credit. Why Hartnett Calls Tech Bonds 'Diamonds in the Rough' According to Hartnett, U.S. technology bonds have lost about 9% so far in 2026. That leaves their total return relative to the broad investment-grade bond index at the lowest level in 30 years.

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