· by dbcurren.bsky.social ·1d ago · view on bsky.app ↗

1 Torsten Slok, chief economist, Apollo Globall Management: #AI-related issuance already accounts for nearly 40% of longer-duration #investmentgrade #corporatebond supply, and the #financing needs are only getting larger. 🧵

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Chart indicating that the A.I.-related share of investment-grade corporate bond issuance has surged this year and now accounts for almost 40% of new supply in that rating category.

1 comments — live from bluesky

Don Curren 🇨🇦🇺🇦 · 3 · 1d ago

2 Torsten Slok: We estimate the #AI ecosystem could fundamentally support more than $2 trillion of additional #investmentgrade debt, while public IG #markets may be able to absorb less than $1 trillion of that amount through 2030 because of concentration and ratings constraints.

milly2377.bsky.social · 0 · 1d ago

Could? May be able to?

Don Curren 🇨🇦🇺🇦 · 1 · 1d ago

Given that these are forecasts of amounts that can only be estimated at this point, that phrasing seems reasonable to me.

milly2377.bsky.social · 1 · 1d ago

They are estimating based on imaginary hopeful manipulated numbers. Unimaginable debt will never be repaid.

Don Curren 🇨🇦🇺🇦 · 2 · 1d ago

3 Torsten Slok: That gap creates a significant opportunity for private #IG. We expect more than $1 trillion of #financing could migrate toward #privateplacements, #infrastructuredebt, #asset-backed facilities, #equipmentfinancings and #project-level structures … 🧵

regcalgary.bsky.social · 1 · 1d ago

Somehow that migration to these seemingly less secure investment vehicles doesn't feel reassuring....

Don Curren 🇨🇦🇺🇦 · 1 · 1d ago

4 Torsten Slok: … often with collateral, contractual support and structural protections that are unavailable in #unsecured #public #bonds. #AI #debt