Carnage In Hyperscaler Credit: Really?
“Carnage in hyperscaler bond land”, claims the Tweet below. The graph below the Tweet shows “exploding” yield spreads for hyperscalers. These hyperbolic messages and many others are generating fear in some investors that the largest hyperscalers are in financial trouble. The bearish hyperscaler narrative is not all it's cracked up to be, as we will explain. The graph above shows that a basket of credit default swaps** (CDS) for the five largest US hyperscalers is “exploding” from 115 bps to 162 bps in the last few months. Given the basket is comprised of some of the largest US companies…
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