50ptMAE(@50ptMAE):As posted here, credit carries all the risk of the AI capex buildout with a CAPPED UPSIDE. So its natural and normal that is trading much weaker than equities. Its not some secret predictor of future equities price action. Its an asset class that has a poor risk/reward to express this mega theme (AI). If AI transform businesses, and double profit margins you can see equity prices explode. If you bot the AI hyperscaler paper, you still only make 5.5% or whatever.

2026.10.07 22:23

As posted here, credit carries all the risk of the AI capex buildout with a CAPPED UPSIDE. So its natural and normal that is trading much weaker than equities. Its not some secret predictor of future equities price action. Its an asset class that has a poor risk/reward to express this mega theme (AI). If AI transform businesses, and double profit margins you can see equity prices explode. If you bot the AI hyperscaler paper, you still only make 5.5% or whatever.

50ptMAE@50ptMAE

2026.07.08 03:57

If you think the AI trade sees imminet downside, ground zero will be credit. Credit has not followed equities to new highs, and it has the same if not more downside. AMZN with anoter 25bn raise this week. ORCL cds back at wides. NDX/SPX iv spread at multi year highs and it is prohibitively expensive to buy options rn on Qs, which has been just chopping since June. Also credit doesnt have the retail buy the dip flow that has been instrumental in the tech stocks rally.