Show Notes
Does a Bank of England warning about AI borrowing change anything for a CFO in packaging or healthcare services? The position here is yes, because you borrow in the same pond. The Financial Policy Committee's 25 September record flags opacity and circular arrangements, Morgan Stanley puts AI-related issuance near $450 billion by early September, and JP Morgan sees about $4.1 trillion of debt-financed capex to 2030.
You leave able to read the evidence already in prices: SoftBank's 8.625% to 9.75% coupons, hyperscaler ABS at 150 basis points over the five-year Treasury, CLO demand clustering on double-B names, and Goldman's $510 billion capacity counterargument.
0:00 Circular arrangements in AI financing explained 1:35 Sizing AI debt: $450bn and $4.1trn 3:00 Why CLO buckets set your loan pricing 4:03 Hyperscaler ABS spreads widen over Treasuries 5:58 Goldman's capacity argument against the worry 7:37 Repricing your 18-month maturity schedule
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