🚨 SOFTBANK IS TAKING ON MASSIVE DEBT AT RECORD-HIGH YIELDS TO DOUBLE DOWN ON OPENAI.
The company is preparing to sell around $11 billion of junk bonds.
That could be one of the biggest junk bond deals ever by a single firm.
And the timing is ugly.
SoftBank’s 2031 bond yield has jumped to around 8.2%, the highest level ever.
It has already raised billions more through loans, margin financing and other debt to fund its AI push.
So the risk is getting concentrated fast.
If OpenAI continues to grow, SoftBank can manage it.
But if AI valuations fall or OpenAI faces trouble, SoftBank could be left with huge debt, higher borrowing costs and a situation similar to 2000, where SoftBank's stock crashed 93%.
So it turns out China was building a hydro electric facility by a glacier and all the construction caused a portion of the glacier to collapse, tumble down, and turn into a mudslide that killed like 2,500 Nepalese people.
But all you will hear about in the news is leftists claiming this was because of climate change