Hyperscaler CDS Volumes Explode To All-Time High On Credit, Circular Financing Fears

Market participants had expected a GOOGL deal to come to the market for some time, and it did late last week, although it was so large ($25BN+) spreads promptly blew out even more immediately after.

The 30y bond priced with a 15-20bp new issue concession (+115) and closed the week 7bps tighter from pricing (+108). On the week, the GS AI basket outperformed closing -2.8bps tighter compared to our GS IG100 broad based basket which finished -1.8bps tighter.