🤖 BIG TECH JUST PUT A $300 BILLION FLOOR UNDER AI DEBT.
Big technology companies are increasingly using residual value guarantees to support as much as $300 billion of financing for AI data centers and chips. The structure is simple in principle: lenders finance rapidly depreciating infrastructure, while a stronger counterparty guarantees a minimum future asset value.
💰 That matters with the 10 year Treasury essentially at 5%. Private capital is not disappearing, but investors are demanding a much clearer explanation of what protects principal when the collateral becomes obsolete faster than expected.
🇨🇦 CPP Investments and Brookfield also…
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