INSTITUTIONS: BOND TRADERS ARE WORRIED ABOUT THE SHADOW CREDIT GUARANTEES OF THE AI FIRM

Institutional analysis indicates that bond traders are worried about the “shadow credit” guarantees of artificial intelligence enterprises. Prior to the announcement this week of $500 billion in financing cooperation by Ying Weida, investors had begun to focus on some $70 billion in “shadow liabilities” that were not on the balance sheets of major artificially intelligent enterprises but could emerge at a time of crisis. Weeda may provide tens of billions of dollars of “residual support” for debt transactions related to the construction of AI infrastructure, using its high credit ratings to help clients control financing costs. As the need for computing capacity surges, this guarantee is almost equivalent to “free lunch” for giants such as Inverda and Botton. However, some investors have expressed doubts about this logic, and DobleLine portfolio manager Mariya Entina has stated: “It is like playing with rules and trying to obtain special treatment from rating agencies”