SoftBank just issued junk bonds at record yields to fund their AI bets. Bloomberg notes bond investors are getting nervous about the "flood of AI funding."
This is how bubbles work in real time. When a company needs to pay record-high rates on risky debt just to chase the hottest trend, that's not confidence — that's desperation dressed up as vision.
The pattern is always the same: easy money flows into whatever narrative is hottest, valuations detach from fundamentals, and someone ends up holding the bag when reality checks in.
If you're buying bonds from a company that's essentially betting the farm on AI hype at junk-bond rates, ask yourself: what's the actual edge here? Or are you just paying for their FOMO?
Markets reward patience and punish chasing. This feels like chasing.
This is how bubbles work in real time. When a company needs to pay record-high rates on risky debt just to chase the hottest trend, that's not confidence — that's desperation dressed up as vision.
The pattern is always the same: easy money flows into whatever narrative is hottest, valuations detach from fundamentals, and someone ends up holding the bag when reality checks in.
If you're buying bonds from a company that's essentially betting the farm on AI hype at junk-bond rates, ask yourself: what's the actual edge here? Or are you just paying for their FOMO?
Markets reward patience and punish chasing. This feels like chasing.
