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This marketing document has been issued by Bank Syz Ltd. It is not intended for distribution to, publication, provision or use by individuals or legal entities that are citizens of or reside in a state, country or jurisdiction in which applicable laws and regulations prohibit its distribution, publication, provision or use. It is not directed to any person or entity to whom it would be illegal to send such marketing material. This document is intended for informational purposes only and should not be construed as an offer, solicitation or recommendation for the subscription, purchase, sale or safekeeping of any security or financial instrument or for the engagement in any other transaction, as the provision of any investment advice or service, or as a contractual document. Nothing in this document constitutes an investment, legal, tax or accounting advice or a representation that any investment or strategy is suitable or appropriate for an investor's particular and individual circumstances, nor does it constitute a personalized investment advice for any investor. This document reflects the information, opinions and comments of Bank Syz Ltd. as of the date of its publication, which are subject to change without notice. The opinions and comments of the authors in this document reflect their current views and may not coincide with those of other Syz Group entities or third parties, which may have reached different conclusions. The market valuations, terms and calculations contained herein are estimates only. The information provided comes from sources deemed reliable, but Bank Syz Ltd. does not guarantee its completeness, accuracy, reliability and actuality. Past performance gives no indication of nor guarantees current or future results. Bank Syz Ltd. accepts no liability for any loss arising from the use of this document.
Source: Brew markets
The AI buildout was funded with cheap debt. That cheap debt is about to run out. Starting next year, data center builders have $13.4 billion of debt coming due, per BloombergNEF. Refinancing it at today's rates means paying 2.85 percentage points more in interest, adding at least $380 million in extra costs. That is just the first wave. The companies renting out AI chips, like CoreWeave and Nebius, have $49 billion due from 2030 to 2032. CoreWeave's 2032 bonds now yield above 16%, and the 10-year Treasury yield is back above 5%. So the AI industry will have to refinance hundreds of billions in debt, backed by chips that lose value every year, at the highest rates in decades. If lenders are this worried now, who is going to refinance all of this? Source: Bull Theory on X, Global Markets in X, Bloomberg
This chart compares the current ChatGPT bull market with the internet bull market of the 90s Source: NDR
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