J.P. Morgan argues that the “AI” label is no longer enough to reassure lenders about companies’ ability to finance investments, service debt and eventually generate cash flow. Elon Musk had warned on October 25, 2026, that debt markets had almost entirely cut off financing access to companies whose revenue depends solely on AI data centers. According to Morgan Stanley, average weekly trading volume in CDS linked to bonds from Oracle, SpaceX, Alphabet, Amazon, Meta, Broadcom and Nvidia exceeded $9 billion in September, compared with less than $2 billion per week in July. The five-year CDS of an unnamed, heavily indebted company surged to 1,100 basis points, which Biemann said implied a probability of default near or above 50% over five years. J.P. Morgan rules out a crisis comparable to Lehman Brothers, but warns that an AI slowdown could spread to Bitcoin, which traded around $79,597 on October 6, 2026, down 5.9% over 30 days.
Source: Read the original article
