The debt is at the supplier level. The hyperscaler/Nvidia obligations are purchase commitments which amount to over $1 trillion (and rising $350BN per quarter) as suppliers will need decades to fulfill those purchases (assuming no recession, contract breaches, etc of course). What's worse is that unlike NINJA loans, these don't even appear on the balance sheet. Meanwhile, the securities funding the commitments come from life insurers whose are now paying Apollos and Blackstone the fund the equity tranche of the off BS SPV

The debt is at the supplier level. The hyperscaler/Nvidia obligations are purchase commitments which amount to over $1 trillion (and rising $350BN per quarter) as suppliers will need decades to fulfill those purchases (assuming no recession, contract breaches, etc of course). What's worse is that unlike NINJA loans, these don't even appear on the balance sheet. Meanwhile, the securities funding the commitments come from life insurers whose are now paying Apollos and Blackstone the fund the equity tranche of the off BS SPV

Source:https://twitter.com/zerohedge/status/2086964802589503701