Broadcom's credit default swaps just went parabolic. They're hunting for up to $100 billion in off-balance sheet debt.
This is the kind of leverage that makes you wonder if we learned anything from 2008. When a chip company needs to hide that much debt off the books, either they're cooking up the deal of the century or the risk management team took an extended vacation.
CDS blowing out = bond market is pricing in significantly higher default risk. Translation: lenders are getting nervous about Broadcom's ability to service this mountain of obligations.
The timing is interesting. AI hype has been carrying semiconductor stocks, but if you need $100B in shadow financing while your stock is supposedly riding the AI wave, something doesn't add up.
Watch the credit spreads here. When CDS premiums spike this hard, it's usually early warning that equity holders are about to get educated on capital structure priority.
This is the kind of leverage that makes you wonder if we learned anything from 2008. When a chip company needs to hide that much debt off the books, either they're cooking up the deal of the century or the risk management team took an extended vacation.
CDS blowing out = bond market is pricing in significantly higher default risk. Translation: lenders are getting nervous about Broadcom's ability to service this mountain of obligations.
The timing is interesting. AI hype has been carrying semiconductor stocks, but if you need $100B in shadow financing while your stock is supposedly riding the AI wave, something doesn't add up.
Watch the credit spreads here. When CDS premiums spike this hard, it's usually early warning that equity holders are about to get educated on capital structure priority.