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33d3aaon Anthropic assigned highest junk credit rating in June

Correct - there are no freebies here!

You can't really rip off bond-holders when you are not positive EBIT and EBITDA...

33d3aaon Anthropic assigned highest junk credit rating in June

Correct hyperscalars are doing fine - as it stands.

The problem is OAI/Anthropic - but if OAI and Anthropic fail the whole thing comes apart. Goog, Meta etc will be fine as they had tremendous cash flow generating operations prior to datacenter offerings w.r.t LLMs.

33d3aaon Anthropic assigned highest junk credit rating in June

Its rated as junk.

And if default risk rises, yes the value of those bonds will get crushed. But Id argue the value of equity will be more so - since they are not A) positive EBIT B) EBITDA

Those two numbers are variables that compose measures of default risk.

Calm your panties down. Kroll != S&P.

33d3aaon I sold all my SP500 yesterday morning

Did you even read the twitter post?

This is not panic selling. This is someone who has done their own analysis and determined the situation does not look sustainable and it's time to get out.