Hidden Debt: Is Our Hyperscaler Thesis Wrong – Part 2
Having just published Carnage In Hyperscaler Credit, a reader pointed us to an article from Nikkei Asia titled "Five US Tech Giants’ Hidden Debt Soars To $1.65tn On Opaque AI Funding.” He asked if the article and its claims that off-balance-sheet obligations at Alphabet, Microsoft, Amazon, Meta, and Oracle have grown roughly eightfold in four years to an estimated $1.65 trillion change our opinion from what we just wrote. To recap, in Part One, we opened with a chart showing hyperscaler credit default swap spreads jumping, or as some claim “exploding,” from 115 to 162 basis points. While the…
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