Debt-hungry AI companies face increased risk as bond yields spike

Share

U.S. Treasury yields have climbed to their highest levels since 2007, raising borrowing costs for AI companies building out infrastructure. JPMorgan Chase estimated in June that $4.1 trillion in AI-related debt will be issued through 2030, while the 10-year Treasury yield approaches 5.17%, up about one percentage point since the start of the year. SoftBank raised $11.1 billion this week in a junk-bond sale with yields reaching as high as 9.75%, while CoreWeave shares rose nearly 8% for the week and Oracle fell 7%. Lenders are becoming pickier, with industry experts saying only about 20 of the current 50 neoclouds truly attract market interest.

Source: Read the original article

Disclaimer: this content is for information purposes only and is not financial advice. Cryptocurrencies are highly volatile: you may lose all of your capital. Always do your own research. Legal notice
Telemac
Telemachttp://cryptoinfo.ch
Passionné de nouvelles technologies, j’explore l’univers de la blockchain et des cryptomonnaies pour partager l’actualité et les innovations du secteur.

Read More

Items