Is This How the AI Bubble Pops?
Could conduit debt financing be the MBS of our era? I unpack conduit debt financing explained, show how SPV data center leases work, why Meta’s $27 billion Blue Owl deal with its four year lease opt out matters, and how pension funds, insurers and retail investors could be exposed if an AI infrastructure bubble bursts.
Rolly's Take
For the discerning reader who perceives the fine line between innovation and folly. They navigate the intricate web of finance, searching for deeper implications amidst the fervor of AI speculation, while quietly questioning the true sustainability of this new infrastructure. This blog invites them to reflect on the shadows lurking behind seemingly innocuous financial instruments, urging a thoughtful pause before the next leap.