Credit & Fed Desk: October 7, 2026
Good morning. It's Wednesday, October 7th, and you are listening to the Credit and Fed Desk.
The AI boom is now borrowing in size. SpaceX is in talks to borrow about 40 billion dollars to buy Nvidia chips. That comes days after Broadcom started lining up 60 billion dollars in chip financing for Anthropic and others.
And this morning in Singapore, Ray Dalio called AI a "classic bubble." On the point where rising rates pop it, his words were, "I think we're close to that."
Meanwhile, at the bottom of the credit market, JPMorgan says deeply distressed loans just hit their highest since March 2020. The biggest slice is tech.
Show notes
- Fed: Timiraos on 'play the ball, not the referee'; September minutes at 2 PM ET; October hike odds ~25%.
- Treasuries: 10-year back near 5.3% as Brent holds above $100; Levine on the bond-futures delivery switch.
- France: OAT–Bund spread snaps from 141 to 127 bp; Bank of France still says not yet.
- Credit: JPMorgan distressed loans at a March 2020 high; private-credit shorts and an EA defeasance fight.
- AI capital rush and Arthur Hayes: SpaceX/Broadcom chip debt, Dalio's bubble call, labeled Hayes segment.