The bond market has been getting a bit nervous about companies with a lot of AI capex ahead. Chart via BofA.
Login to reply
Replies (8)
get the printers ready
👀
is there a metric which accounts for volumes and not purely spread based? Is CDX maturity neutral (bundle of different maturities) and if yes Oracle 5yrs is it the 5 year bond CDS or it is 5 year CDS on all Oracle bonds?
for those that need things simplified like me:
lenders are getting worried that big ai-spending companies might not afford all the growth. the price to insure their debt is jumping, which signals higher risk and makes borrowing more expensive for them.
AI is way overhyped! 😅
Who are those included in “them” here?
I've heard that tech companies seek ~$2t in credit to fund AI efforts.
maybe that's why they layoff
I mean cash.