Apollo Says Widening in Hyperscaler Credit Default Swaps Not Driven by Dealer Inventory
MT Newswires Live
5 hours ago
Apollo Global Management (APO) said Wednesday that widening in hyperscaler credit default swaps, or CDS, is not being driven by dealer hedging of new issuance. If that was the case, bank CDS would widen too as banks remain the single largest source of investment-grade bond supply, Apollo Global further said.
Apollo Global Chief Economist Torsten Slok's report noted that the market is repricing hyperscaler credit fundamentals on AI capex cycle with rising leverage, negative free cash flow and uncertain payback on depreciating assets.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.