Investor Questions AI Capex Effects on Yields and Rates
Investor Delian Asparouhov links AI-driven capital spending to record corporate bond sales and rising yields.
TLDR
Delian Asparouhov posted that the AI boom is producing the greatest capex supercycle ever seen. He said this has prompted record bond issuance by the largest companies, putting them in competition with the Federal Government for debt buyers and driving yields higher. In a follow-up he asked whether high yields plus heavy spending would raise inflation, leading the Fed to increase rates. Such a step, he noted, could lift treasury yields and the US debt burden further while cutting the value of AI cash flows.
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3 Sources, first seen 25d ago