A New Circularity

About this episode

The episode discusses the shift in the AI Ecosystem's spending and investment circularity and its impact on credit spreads and various financial markets.

Concerns over the spending and investment circularity of the AI Ecosystem between chip makers, hyperscalers and data centers has shifted to a New Circularity, driving credit spreads wider. The New Circularity was initiated by new AI apps hitting software equity valuations and credit spreads, which in turn is feeding into concerns over vehicles exposed to that widening, namely the Broadly Syndicated loan market, the Private Credit market, BDCs and even Insurance Companies. Valuation declines have in turn driven redemption requests which has placed more pressure on credit spreads Participants: Jason Mandel (Desk Strategy), Head of Leveraged Finance Desk Strategy Jason Daw (Desk Strategy), Head of North America Rates Strategy Steven Denny (Desk Strategy), Head of US IG Credit Strategy * Research Analyst opinions are their published views, independent of those expressed by Desk Analysts

People in this episode

Guests: Jason Mandel, Jason Daw, Steven Denny

Topics covered

• AI Ecosystem
• credit spreads
• investment circularity
• valuation declines
• Private Credit market
• syndicated loans

Keywords

• AI
• credit spreads
• investment
• valuation
• Private Credit
• syndicated loans
• data centers

Mentioned in this episode

Organizations: AI Ecosystem, Broadly Syndicated loan market, Private Credit market, BDC, Insurance Companies

More episodes of Macro Minutes

• Going for a hike! · June 12, 2026 · 13 min
• Investment strategy through the ‘up crash’ and beyond · June 5, 2026 · 19 min
• Limbo of war · May 29, 2026 · 17 min
• Anarchy in the UK? · May 15, 2026 · 16 min
• Positivity isn’t always naivete · May 11, 2026 · 22 min
• Searching for EM opportunities · April 28, 2026 · 14 min