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Bull Theory
@BullTheoryio
News, Research, and all other Global market stuff simplified.
参加 January 2017
145 フォロー中    266.8K ファン
🚨 SOFTBANK'S DEBT CRISIS IS GROWING. It is now down -25% in just the last 7 trading sessions. The biggest concern is its exposure to AI. As of June 2026, it held $164 Billion in debt, much of it used to finance its AI investments. The interest costs for this is already at $2 Billion, up 95% from Q1. In September, it raised another $11 Billion at interest rates as high as 9.75%, adding $1 Billion in annual interest. Investors are now panicking over whether these massive costs will ever translate into actual profits. SoftBank’s 5-year default insurance (CDS) shot up by 24 basis points to 424 bps. This makes it a similar story to what happened to Oracle’s 5Y CDS (288 bps) and CoreWeave’s CDS (1,100bps). Higher US inflation and Fed rate hike fears are adding even more pressure. Any corrections in AI valuations could hurt its investments and make it difficult to repay such large debt.
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