The AI circular financing backed by private credit being this opaque is an alarming peak as to how Dodd Frank has failed to gauge & account for how new systematic risk can grow in the shadows, even if the derivative credit instruments are being tracked. For example - this deal doesn't really tell us how much credit was involed beyond the $926M senior secured term loan tied to GPU servers and contracted cash flows, reportedly with Nvidia as a take-or-pay counterparty. But that's after they already raised $2B in debt arranged by JPM leased to MSFT that was just annouced last week. https://t.co/xaZ1Lmrqk4
Maya ZehaviShare
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