Credit Crunch Imminent: Hyperscalers Blow Past Full-Year Debt Forecast As AI Bond Concessions Soar

Talk about timing.

Last Thursday afternoon, with the Nasdaq 100 down 6.4% and the SOX down 12% in the worst day for tech since Covid, Goldman's credit strategist Amanda Lynam hit send on her latest Global Credit Trader, "AI-Related Supply: Outlining the Directional Risks (available to pro subs). Its message for the bond market: the AI debt supply is coming faster than anyone (including Goldman) modeled, and between now and early December the risks to spreads are "firmly tilted towards more widening."

$67 Billion In A Week, And The Forecast Is Already Toast