Are AI bonds fueling the next subprime debt crisis???

@corporategossippod

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Why it worked

The video uses a high-stakes, contrarian hook that connects a complex financial topic to a well-known historical event, creating immediate curiosity and urgency.

Summary

The creators discuss a Morningstar report suggesting that AI infrastructure bonds are being misrated as investment-grade despite having yields typical of junk bonds. They compare this financial situation to the 2008 subprime mortgage crisis and mention that a deeper dive is available on their Patreon.

Structure

1Introduce the theory of an AI debt crisis
2Present evidence from a Morningstar report
3Highlight the discrepancy between bond ratings and yields
4Compare the situation to the subprime mortgage crisis
5Direct viewers to Patreon for the full discussion

Product placement

The creators mention their Patreon as the place to find the full discussion on the topic.

Call to action

We dive into meta’s shit stew on this week’s patreon out later today!

Original caption

Is there a looming AI debt crisis? We dive into meta’s shit stew on this week’s patreon out later today! #meta #ai #debt #corporategossip

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On-screen text

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Transcript

Are AI bonds fueling the next subprime debt crisis??? Basically, these companies have tied their entire future to a very specific outcome that is looking increasingly unrealistic. This is what I think is really annoying. This blew my mind. This is from Morningstar. The S&P Global ratings assigned these bonds. So the loans of these private equity companies are taking out to fund these data centres. They assigned the bonds of an investment grade rating of A+. However, the debt yield is 6.58%. Okay, that rate is typically associated with junk bonds. So they're saying it's A+, but what are their actions showing? What is this remind you of? Like, this shit? This is the plot of a movie and a book and something that actually happened. I wrote, what? It's giving sub prime mortgages. Yeah, I know. And when I was reading this I was like, God, this is, I feel like I'm reading about the sub prime mortgage crisis in a book. Yeah, about the sub prime mortgage crisis, but it's happening right in front of me.