CMBS Investors Push Back Against AI as 'Luddite Trade' Spreads

Tech companies are aggressively borrowing through commercial mortgage-backed securities (CMBS) to fund their AI expansion, but investors are becoming increasingly cautious about this debt exposure. The growing skepticism among CMBS investors, even in smaller markets, reflects concerns about the sustainability and risks associated with tech sector borrowing for AI initiatives. This pushback suggests a potential shift in investor sentiment toward what some are calling a 'Luddite trade' stance on technology-heavy investments.