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

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.