The bond market is pushing back on AI spending | The 8:30
Microsoft issued $25 billion last Thursday, its first US bond offering since 2017. Meta is considering another $20 billion across several currencies, Oracle sold $10 billion of bonds and $9.9 billion of equity, and Alphabet went to the euro market for €6 billion. Jake Conley’s read is that the hyperscalers are hunting for money wherever it still is. Luke Kawa of Sherwood News explains why September was the quiet month, why every hyperscaler except Microsoft is now at fresh spread wides, and why the constraint is turning from the cost of capital into the supply of it.
Featuring
Jake Conley, Breaking Business News Reporter, Yahoo Finance
Pras Subramanian, Senior Autos Reporter, Yahoo Finance
Luke Kawa, Sherwood News
Watch the full episode of The 8:30: https://youtu.be/1aku4K6cGUo
Timestamps
0:00 A third correction this year
1:14 There is such a thing as too much of a good thing
2:17 Every hyperscaler except Microsoft is at fresh wides
3:25 Microsoft, Meta, Oracle and Alphabet all went to the bond market
5:08 Blackstone says this is the best opportunity it has ever seen
#AIStocks #CorporateBonds #CreditSpreads #The830 #YahooFinance
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