alt Hacker NewsWell I'd agree the size of these deals are far larger than any debt deals I can remember in the past 10 years.
But that has nothing to do with the scare tactic headline that says banks are trying tot offload debt. As I said this is exactly how banks work and how they treat all debt they underwrite.
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ares623 • today at 12:25 AM
I believe the implication is that if AI is really The Second Coming (or First Coming, if you prefer), then banks would want to keep the debt and the potential gains of said debt. Or rather, there should be an overwhelming demand for said debt.
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If the of fate of the AI boom is so fragile that a digital newsletter site's headlines are a meaningful concern to you, perhaps you have some things to ponder. The story itself names names, quotes verifiable statements and makes reasonable inferences.
And this is supposedly high grade debt we're talking about: JPMC is spending months on end shopping around a few $10's of billions, and having to discount it. Never mind the far greater sums on the books of vastly less credible outfits, complete with meme names that always age poorly when things go pear shaped.
How a bunch of highly speculative moonshot big tech stuff has managed to be financed by Tier 1 financial institutions and high grade debt, as opposed commonplace equities, is a question for the ages, and we may all yet find ourselves suffering the answers.