Franklin Templeton CEO Jenny Johnson said short-term debt issued by large tech
firms presents an attractive way to gain AI exposure given those firms’ strong
cash flows and balance sheets. She said tech financing has grown more complex —
extending beyond traditional creditors to include off-balance-sheet facilities
guaranteed by major cloud providers and vendor financing where suppliers act as
lenders. Holding long-term bonds, she warned, exposes investors to uncertainty
from rapid technological change. Johnson added the AI wave has not yet
materially raised productivity; current U.S. productivity growth of roughly 2%
reflects past two decades of technology and AI will take time to integrate into
the economy.
