Story perspectives

Private Credit Eyes Infrastructure Amid $3 Trillion Demand

8/20/2025

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Summary

Story summary

Private credit is increasingly drawn to infrastructure and digital sectors for their high margins and attractive returns.
There are concerns about excessive capital inflow, which may create market instability.
Morgan Stanley projects a $3 trillion capital expenditure requirement over the next three years, anticipating substantial bond issuance.
Most debt instruments are expected to receive investment-grade ratings due to their long maturities and robust collateral.

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Story summary

Private credit is increasingly drawn to infrastructure and digital sectors for their high margins and attractive returns.
There are concerns about excessive capital inflow, which may create market instability.
Morgan Stanley projects a $3 trillion capital expenditure requirement over the next three years, anticipating substantial bond issuance.
Most debt instruments are expected to receive investment-grade ratings due to their long maturities and robust collateral.