🔥 Nvidia bond sale: $85 BILLION of orders for $25bn deal — 4x oversubscribed
The numbers:
🔵 30yr priced at T 65bp (tightened 25bp from initial talk)
🔵 First deal in 5 YEARS, 4x larger than any prior issuance
🔵 Company generates $200bn FREE CASH FLOW annually
🔵 AA rated, 7-tranche structure
The AI spending spree:
💰 $5bn Intel stake
💰 $10bn Anthropic
💰 $30bn OpenAI
💰 Boosting shareholder payouts
The irony: Printing $200bn FCF but borrowing anyway. Why? Cheaper to lock 30yr funding at T 65bp than deploy internal cash.
2026 mega-deals: Amazon $37bn, Oracle/Meta/Salesforce $25bn each, Alphabet/Nvidia $20bn
The takeaway: Tech flooding market with HUNDREDS OF BILLIONS for AI infrastructure. 4x oversubscription on a $20bn deal from a company swimming in cash = peak credit appetite.
Are you buying this as the AI trade or fading it as peak hubris?