PremiumGoldman's Quiet Downgrade: Why The Bank Now Prefers BBBs Over AAs As AI Debt Floods Every Corner Of Credit
The CoreWeave bagholders have been named, and the $106 billion bill has been tallied. That leaves the more uncomfortable question: what happens to the rest of the credit market?
Readers have already seen two takes on Goldman's latest Global Credit Trader, "AI, Credit, and a Higher Cost of Capital" (available to pro subs). Late last week, we showed who is left holding the AI datacenter junk (investment advisors, who quintupled their holdings this year), and a few hours later we laid out how the AI unwind entered "phase two" just as the debt bill came due. Both focused on the datacenter bonds themselves. But the most interesting part of the note from Amanda Lynam's credit strategy team is what it implies for everything else, much of it tucked into the forecast and relative value dashboards at the back, which almost nobody reads.