AI capex debt fueling treasury yield pressure
The thesis argued that massive AI-related debt issuance by large tech companies is a contributing factor to rising long-term Treasury yields.
Keep reading this one
You've read the thesis and who argued it. A free account opens the argument, what validates it, the risks the show raised, and the moment in the episode where it was said — 3 ideas in full a day, no card.
The Callback
US Treasury yields headed to 10%
28 weeks between these two statements.
The bear case presented on big tech long-dated debt is that lenders are not being compensated for the risk that AI infrastructure becomes obsolete or that promised productivity gains don't materialize over decades.
The thesis argued that massive AI-related debt issuance by large tech companies is a contributing factor to rising long-term Treasury yields.