Paul Kedrosky
speaker
1,259 appearances
4 recordings
2 series
first heard Apr 2026
last heard 6d ago
Paul Kedrosky’s voice in public audio — every appearance, attributed to the second.
Trend
recordings per month · last 12 monthsRecordings per month over the last 12 months — 4 in all, peaking in Sep 2026 with 1.
Appearances
And that's the fundamental circularity at the core of all of this.
Well, a couple of different things.
One is that this is the equity raise.
Yeah, so it tells you that the appetite continues to be incredibly high for equity, which is surprising because for the most part, the funding has been increasingly moving towards credit, obviously, right?
Yeah.
And because of the saturation of their cash flows with respect to having to sort of
and inoculate themselves against all of the other commitments they have.
My favorite example being that, and Microsoft's a good example of this, is that their stock-based compensation is so high that they have to, which is obviously only handled through cash flows, that the way they inoculate themselves against it is they have to do stock buybacks.
And once you start doing that, you've got a much larger commitment of cash, which forces you, after you pay for hyperscaler data centers...
You then have to start doing raises off balance sheet using SPVs and other kinds of funding vehicles.
So that they're able to do this is sort of surprising to me to a degree that there's still this much appetite for non-credit equity financing of some of their future obligations because it gives you no call on future cash flows.
So what's in it for you as a provider of equity here?
It's not clear.
So there's no question about that as well.
So that's the other side of this is that as of Q1 2020, what year are we in?
2026, I have to look around the room.
That's bad.
So as of Q1 2026, the hyperscalers are now the largest issuer of investment-grade debt in investment-grade markets worldwide.
They just passed the banks.
So yes, the other answer to this question is there is a capacity issue with respect to the further issuance of investment-grade debt.
Showing 841–860 of 1,259 · page 43 of 63
← Previous
Next →