Bessent Dismisses AI Financing Fears Despite Credit Market Warning Signs

Treasury Secretary Scott Bessent said rising yields on AI-related debt do not signal a broader funding crisis, noting neoclouds are a small part of the AI ecosystem. Yet at least 18 speculative-grade data center bonds and loans now carry double-digit yields, and Oracle's CDS hit a record high.

• At least 18 speculative-grade data center bonds yield over 10%
• A $5B Volta Infrastructure loan was repriced above 11% yield
• Top-rated data center bond yields rose from under 5% to about 7%
• Musk predicted failures or consolidation for over 200 neoclouds