Bond Traders Express Concern Over $70 Billion in Undisclosed "Shadow Credit Backstops" on AI Companies' Balance Sheets
Investors are reportedly growing anxious about approximately $70 billion in phantom liabilities that are not reflected on major AI companies' balance sheets but could emerge unexpectedly. This concern comes as Nvidia Corp. recently announced a $500 billion financing partnership, where it will provide "residual value" support for debt deals related to AI infrastructure, effectively using its strong credit rating to help manage customer costs.
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