Capex keeps growing
full particle train · loop holds
Capex stalls / refinancing dries up
strains the loop
The AI capex to private-IG-credit funding loop
rising debt share
long-dated IG issuance
spills into private credit
long-dated paper held
capacity recycles
refinancing dries up
1
Hyperscaler AI capex
roughly tripled since '23
2
Debt financing of capex
debt share of capex rising
3
Public IG absorption
limit -> spills to private credit
4
Private IG origination
Apollo · Athene, long-dated
5
Insurer / pension
long-dated liabilities absorb
loop holds
loop strains
strain signals
capex slows
refinancing dries
revenue lag