Bond Traders Concerned Over AI Companies’ $70 Billion Shadow Credit Backstops
Macro·1 article across 1 outlet
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Investors are increasingly worried about the estimated $70 billion in phantom liabilities associated with major AI companies. These liabilities do not appear on their balance sheets but could emerge at critical moments.
The anxiety among bond traders has intensified, particularly following Nvidia Corp.’s recent $500 billion financing partnership, highlighting the potential risks in the AI sector.
Nvidia
Sources
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“Even before Nvidia Corp.’s splashy $500 billion financing partnership this week, investors were starting to fret over the roughly $70 billion in phantom liabilities that don’t appear on major AI companies’ balance sheets, but could materialize at the worst possible time.”
Bloomberg — Bond Traders Agonize Over AI Companies’ $70 Billion of Shadow Credit Backstops