quote: According to MS, AA-rated hyperscalers are "mostly price insensitive to higher interest rates," since they start | Hanami
quote: According to MS, AA-rated hyperscalers are "mostly price insensitive to higher interest rates," since they start from interest coverage above 30x. The problem is everyone else. In an illustrative exercise, MS has the high-quality hyperscalers issuing $400 billion at 7% next year, which takes coverage from 30.7x to a still-comfortable 11.9x. But give Oracle and SpaceX $120 billion at 8.5%, and their combined coverage collapses from 4.0x to just 1.8x. | Nvidia Gets $690BN, The Other 499 Get $340BN: Tracing Every Dollar Of 2027's AI Capex https://www.zerohedge.com/markets/nvidia-gets-690bn-other-499-get-340bn-tracing-every-dollar-2027s-ai-capex