Cassandra Unchained(@michaeljburry):Per Slok, 87% of VC funding is directed at AI, 49% of investment grade bond issuance is AI, and 38% of high yield bond issuance is linked to AI. During the internet boom, in 1999, less than 40% of VC funding was linked to internet companies. Broadening to the wider tech-media-telecom (TMT) bubble, in 1999, VC funding for TMT hit 80% of all funding. TMT bonds were 40-50% of the high yield bond issuance in 2000 and 25-30% of total investment grade bond issuance. Over $100B investment grade debt issued in 1999-2000 became junk by 2002. High yield debt at 38% today vs 40%-50% back then belies the idea that today’s AI debt issuance is cleaner, backed by more profitable companies today.

2026.05.19 05:21

Per Slok, 87% of VC funding is directed at AI, 49% of investment grade bond issuance is AI, and 38% of high yield bond issuance is linked to AI. During the internet boom, in 1999, less than 40% of VC funding was linked to internet companies. Broadening to the wider tech-media-telecom (TMT) bubble, in 1999, VC funding for TMT hit 80% of all funding. TMT bonds were 40-50% of the high yield bond issuance in 2000 and 25-30% of total investment grade bond issuance. Over $100B investment grade debt issued in 1999-2000 became junk by 2002. High yield debt at 38% today vs 40%-50% back then belies the idea that today’s AI debt issuance is cleaner, backed by more profitable companies today.