But that has nothing to do with the scare tactic headline that says banks are trying tot offload debt. As I said this is exactly how banks work and how they treat all debt they underwrite.
And this is supposedly high grade debt we're talking about: JPMC is spending months on end shopping around a few $10's of billions, and having to discount it. Never mind the far greater sums on the books of vastly less credible outfits, complete with meme names that always age poorly when things go pear shaped.
How a bunch of highly speculative moonshot big tech stuff has managed to be financed by Tier 1 financial institutions and high grade debt, as opposed commonplace equities, is a question for the ages, and we may all yet find ourselves suffering the answers.
It’s not necessarily a statement about AI, it’s just finance and accounting.
If the market is already crammed with sector-concentrated debt (because of the amount already issued), finding buyers for more is going to get increasingly hard.
At some point everyone big already has enough exposure and isn't interested in the risk of more.
The only thing that keeps the party going is being able to drain that debt off bank sheets, but it's hard to see a ton of interest in fixed rate, capped upside exposure to a high risk industry in an environment of rising central bank rates.