Oracle bonds trade well below par, financing is a year-long concern, and it is guarding against possible data-center delays; the speaker suspects a junk-bond-type problem rather than broad AI debt stress and sees default risk above a lower-risk peer, while below-par bonds may offer total returns better than stocks.

Um, we're going to talk about Cororeef and also uh Oracle as well.

And that includes even frankly Oracle or Paramount or other companies now that were once sacred cows that are offering bonds well below par.

Oracle financing has been an ongoing concern all year. Uh this is the latest September 24th. Oracle's move to protect itself against potential delays at a massive data center project developed by Blue Owl in New Mexico said it chill through a trillion dollar market for AI infrastructure financing according to interviews with bankers and investors.

I'm starting to wonder, okay, maybe this is a Cororeweave and and Oracle problem and others like it. In other words, junk bond companies, not so much an overall AI um you know, mag seven debt financing problems because clearly the big ones still can obtain capital and the fact of doing this that I have on my screen.

Again, if Google and Apple and Soft Bank and Oracle are trading well below par with fixed coupons, the total return on some of these bonds is far more attractive than what you can get in the stock market right now.

Apple's risk of default is less than say Oracles or Paramount.