Jurrien Timmer(@TimmerFidelity):Credit worries are a thing again, from French spreads to ORCL and CRWV CDS. The bond market is regulating as it always does (or at least when not financially repressed), and the glass-half-full take on widening AI spreads is that this is a good thing, in that a more disciplined allocation of capital today will prevent a bursting bubble tomorrow. I tend to agree with this. The counterpoint, however, is that the bubble might not be in valuations but in (circular) earnings, and that a slowdown in the datacenter buildout could cause the seemingly endless backlog of semiconductor demand to slow.

2026.10.28 16:12

Credit worries are a thing again, from French spreads to ORCL and CRWV CDS. The bond market is regulating as it always does (or at least when not financially repressed), and the glass-half-full take on widening AI spreads is that this is a good thing, in that a more disciplined allocation of capital today will prevent a bursting bubble tomorrow. I tend to agree with this. The counterpoint, however, is that the bubble might not be in valuations but in (circular) earnings, and that a slowdown in the datacenter buildout could cause the seemingly endless backlog of semiconductor demand to slow.