Aggregator

The infection often goes undetected for years, or even decades, because the tumor-like masses develop slowly over time.

Nvidia To Raise $20BN In Debt From First Bond Sale Since 2021, As AI Debt Frenzy Goes Parabolic

Over the weekend, we published a length report analyzing what we dubbed "the $1.8 trillion off-balance sheet time bomb at the heart of the AI supercycle",  which focused on the recent surge in popularity of off-balance sheet SPVs, as well as $1 trillion in long-term purchase commitments, and $800bn in lease commitments, which support the AI buildout, and do so by masking the true funding costs of the AI buildout, yet which add significantly to off-BS operating leverage. Additionally, when one adds billions in variable lease payments, over $100BN in embedded capex inside accounts payable, as well as the Construction-in-Progress pipeline which reflect capacity built but not yet expensed - and the $520bn cumulative depreciation estimate is where it eventually lands - and one gets a far more ominous picture of the capital stack that is backstopping the biggest infrastructure buildout in US history, which according to Goldman will translate into as much as $1.4 trillion in 2027 capex, and much more in the following years.

We summarized the complex funding picture which is effectively a series of circular financings across the entire AI ecosystem, "vendor financing and repurchase-style arrangements mean a single counterparty's stress can propagate through several balance sheets at once. Think of it as rehypothecated leverage. Concentration compounds it: the >$2tn of remaining performance obligations across major AI players is built on a handful of very large, long-duration contracts, so the backlog that justifies the spending is also a concentrated counterparty exposure."

But even without focusing on the potentially dire consequences of this off-balance sheet funding unwinding, there is a more mundane risk propagating from the AI buildout, and it has to do with the massive leverage unleashed in public debt markets. We spent the first part of our post discussing just that, but the punchline was captured by the following three charts, the first of which shows that YTD, some $236BN in AI-linked debt has been issued, a 357% increase from the same period last year. By year-end, MS expect this number to more than double to $570 billion.

The second, and perhaps most important chart, is the one showing the dramatic increase in hyperscaler gross leverage, which has surged from 0.9x in Q3 '25 to 1.8x currently, doubling in just over two quarters, and surpassing the gross leverage of the entire energy sector. At this rate, hyperscaler debt is growing at about 0.3x turn per quarter.

Not surprisingly, as a result of the surge in combined leverage, hyperscalers are drifting wider, and after trading inside AA spreads for much of 2025, are now on top of A, and as MS warns, "may widen further on supply." And it's not just outlier Oracle: META is now trading wider to CDX IG. 

Putting it all together, what the above indicates is that hyperscalers, and the broader AI ecosystem, has gong into an all-out debt expansion mode, using both on and off-balance sheet vehicles, to fund as much of the infrastructure buildout (now that the price of 1GW of data center has increased from $50BN most recently to as much as $100BN, due to the jump in silicon density with NVDA Rubin-class racks approaching 600kW and every gigawatt carrying far more GPU and HBM content) while the window is open, and - well - while they can.

Today Nvidia could, and according to Bloomberg, Nvidia became the latest company seeking to raise at least $20 billion from its first corporate bond sale since 2021. 

The chipmaker is marketing bonds in seven tranches, with maturities spanning two to 30 years, Bloomberg reports. Price talk on the longest tenor of the Aa1/AA-rated company is a spread of about 0.9% above Treasuries, while the FT adds that "the 10-year portion of the bond was expected to yield 0.75 percentage points above US Treasuries during initial price discussions."

As Bloomberg writes, picking up where we left off, "the deal is extending a relentless wave of borrowing for companies spearheading the artificial intelligence boom. Firms such as Alphabet Inc. and Amazon.com Inc. have been tapping every corner of the debt market to build the computing capacity needed for AI’s rapid expansion, having raised hundreds of billions of dollars since last year. Investors have readily absorbed the supply."

Nvidia said that it intends "to use the net proceeds from this offering for general corporate purposes, including repayment and refinancing of outstanding notes."

Nvidia last tapped the investment-grade bond market in June 2021, when it raised $5 billion. Its ambitions now are far greater.

And yet, as the FT cautions echoing our own warning, "early signs of market fatigue have prompted some tech companies to find alternative avenues for financing."

Anthropic has turned to private credit investors to seal a $35bn deal backed by Broadcom. Google’s parent Alphabet decided to issue equity for the first time in more than two decades, bringing in $85bn in fresh capital earlier this month.

In any case, the bond market clearly remains open for now; however with leverage within the AI space exploding at the fastest pace on record, it may not take much for the window to close at which point the question will again re-emerge: how will the handful of AI-leading companies fund the trillions in unfunded future obligations.

Tyler Durden Mon, 06/15/2026 - 11:25

US Gas Prices Slip Below Politically Sensitive $4 Level For First Time In Months

Summary:

• GasBuddy's U.S. Gas National Avg. Falls Below $4 per gallon 
• AAA's U.S. Gas National Avg. still slightly Above $4 per gallon (expected to fall) 
• US-Iran Peace Deal Sends Brent and WTI Tumbling 

Patrick De Haan, a petroleum analyst at GasBuddy, wrote on X that the national average price of gasoline has finally slipped below the politically sensitive $4-a-gallon level for the first time in many months.

Per De Haan:

The nation's average price of gasoline has fallen 9.3 cents over the last week and stands at $3.99 per gallon, according to GasBuddy data compiled from more than 12 million individual price reports covering over 150,000 gas stations across the country.

The national average is down 52.4 cents from a month ago and is 91.1 cents per gallon higher than a year ago. The national average price of diesel fell 11.7 cents in the last week and stands at $5.182 per gallon.

GasBuddy tracking 26 states where average #gasprices are below $4/gal, with more likely to join in the days ahead, so long as the Strait does reopen. pic.twitter.com/tduDAoGLKX

— Patrick De Haan (@GasBuddyGuy) June 15, 2026

"Average gasoline prices fell in 47 states over the last week, with the national average dropping below $4 per gallon late Sunday for the first time since mid-April," said Patrick De Haan, head of petroleum analysis at GasBuddy.

De Haan continued, "The decline came as oil prices moved sharply lower in reaction to news of a potential deal between the United States and Iran, though it remains to be seen whether the agreement will hold. A handful of price-cycling states saw averages jump before joining the broader downward trend. The real test now shifts to the Strait of Hormuz, where any reopening and resumption of normal oil flows would be the clearest signal that this relief is durable. For now, the national average could continue falling, provided there isn't a drastic reversal and the U.S. and Iran continue moving in a positive direction."

Looking at WTI crude futures and the AAA national average for gasoline, the implied decline suggests gas prices at the pump could tumble toward $3.75 by mid-summer.

Great news ahead of midterm elections. 

Pump Pain Relief? Gas Above $4 May End Soon As U.S.-Iran Peace Deal Sends Oil Lower

The national average for U.S. gasoline prices has hovered above the politically sensitive $4-per-gallon level for 76 days, or roughly 2.5 months, as the Gulf energy shock tightened physical markets and forced emergency SPR draws.

But with President Trump declaring late Sunday, just 30 minutes before NY futures opened, that a US-Iran peace deal has been secured, and with WTI and Brent futures tumbling, pressure at the pump could begin to ease in the very near term.

National gasoline prices could slip back below $4 in the coming days or weeks if the crude selloff holds and traders begin pricing in a reopening of the Strait of Hormuz. Still, normalization of crude energy flows will likely take months, if not longer, to return to pre-war levels.

As of Sunday evening, AAA data show the national average for 87-octane gasoline stands at around $4.074.

Patrick De Haan, a petroleum analyst at GasBuddy, wrote on X shortly after Trump announced the peace deal that the national average for gas could fall to $3.75 by July 4.

De Haan wrote:

The U.S. and Iran signaling a deal has been struck. The next few days will be key to see if the agreement sticks, and if traffic begins moving in the Strait. WTI crude down 5%, as more confirmations come in days ahead, national average price of gasoline may continue to fade.

Beyond that, the national average could fall below $3.75/gal by July 4, under a optimistic timeline, but hurricane season could be a major wildcard for the rest of summer- tight global inventories mean it will take months or beyond to fully restore global oil inventories.

The next several weeks will be key- one major slip up could impact greatly prices moving forward. And with so many speedbumps in this situation, it may be foolish to think this problem is now completely over. Time will tell.

Surging gas and diesel prices over the last 2.5 months have added downward pressure on consumers, especially working-class households, who were hit with sticker shock at the pump. This shift in spending patterns is a concerning trend we have meticulously detailed:

• Here's What Happened Inside Convenience Stores When Gas Hit $4

• Here's What Happened Inside Gas Stations When Gas Hit $4

• Beer Demand Goes Flat As Even Alcoholics Pull Back With Gas Above $4

• Energy Drinks Become Latest Casualty As Fuel Shock Shifts Consumer Behavior

• Three Factors Leave Salty-Snack Demand Stale

The combination of elevated gas prices and fading tax-refund tailwinds had already begun to expose cracks in the consumer economy, particularly among lower- and middle-income households. That likely served as a warning signal for the Trump administration: resolve the Middle East conflict before worsening consumer sentiment and pain at the pump become much larger political liabilities heading into the midterms.

Tyler Durden Mon, 06/15/2026 - 11:25

The Trump-appointed Kennedy Center board filed a request for a stay on June 11, seeking to halt a federal judge’s order requiring Trump’s name be removed from the iconic performing arts venue by June 12. The move comes months after Trump said he was “honored” when the board voted to rename the center in his...

Experts have conducted nationwide training exercises simulating a potential disease outbreaks at the games.

CNN host Fareed Zakaria blasted California’s “failing” Democratic leadership, taking aim at the state’s education, homelessness, housing and overall affordability issues.

While many daters routinely turn to alcohol to ease their anxiety, experts say self-pleasure is a far more effective strategy.

After two plodding seasons of build-up to a war, the “Game of Thrones” prequel finally gets to the good part. Season 3 is all gas, no brakes. 

"The facial features were painted on in an entirely mistaken fashion, which is why we acted immediately to reverse it.''

The recording, taken on June 10, shows the football-obsessed elephant kicking around a red ball.

Only one domestic airline is flying high.

“My beloved daughter, only today I wanted to hug you more than a thousand times. How it's hurting me your departure,."

They’re teching things up a notch. 

“Hell on wheels” killer Mackenzie Shirilla is struggling behind bars – but “still loves” her boyfriend she was convicted of murdering, according to her mom.

The messiest part of Love Island USA hasn't even happened yet.

The 76-year-old went public with his diagnosis while announcing his retirement Friday, calling "time with [his] family ... even more important."

The 76-year-old went public with his diagnosis while announcing his retirement Friday, calling "time with [his] family ... even more important."

They're ready for their “World Cup hot girl summer."

Protests In Los Angeles As Iranian Soccer Team Arrives For 1st World Cup Match

Iranian Americans protested against the regime in Tehran as the Iranian soccer team arrived in Los Angeles for their first World Cup match against New Zealand on June 15.

As the team arrived at the Los Angeles Galaxy’s training ground in Carson, a small group of Iranian Americans shouted, “Down with terrorists!”

The Iranian national team, which traveled to Los Angeles for a #2026WorldCup match, was protested by a group of Iranians in the diaspora carrying US and Israeli flags.

The same group had celebrated while the US and Israel were carrying out military attacks on Iran, and also… pic.twitter.com/XSiciM9tiN

— Antifa_Ultras (@ultras_antifaa) June 15, 2026

As Chris Summers reports via The Epoch Times, the protesters were holding the pre-1979 Iranian flag—emblazoned with a lion and a sun—which is widely used by the Iranian opposition, and some of them also held the flags of the United States and Israel.

FIFA has banned the lion-and-sun standard under a rule that forbids the flying of political flags or banners inside stadiums during the World Cup.

The match against New Zealand takes place as Iran and the United States seek to finalize a deal to end the conflict that began on Feb. 28, when U.S. President Donald Trump launched Operation Epic Fury.

Mojgan Ramezani, 56, an Iranian American at a rally outside the stadium in Inglewood, California, which will host the match, said, “They’re holding hostage their own people.”

Pictures of athletes who allegedly died in custody ​after being arrested by the Iranian regime lined a nearby street corner during a rally organized by the local Iranian American community.

One of the protesters, 70-year-old Hassan Haddadi, said he was frustrated that there had been no regime change in Iran.

“We’re hoping to bring awareness to the Western world, to somehow do something beyond just condemning, to bring an end to this regime,” Haddadi said.

Players ‘Not Political People’

The Iranian team’s coach, Amir Ghalenoei, said he and his players were “not political people.”

The Iranian team captain, Mehdi Taremi, said they were at the World Cup to bring joy to all Iranians and the millions in the diaspora.

“People have different opinions, but we are here to unite people, and we will try to bring joy to all Iranians wherever they live,” Taremi said at a press conference on June 14.

“We are here to bring joy to Iranian people. We do not get involved in politics. We are here to play football.”

Last week, the U.S. Department of ‌Homeland Security announced that the Iranian team—who are based in Tijuana, Mexico—would be allowed to arrive in the United States on the day before their matches.

Los Angeles is home to the largest Iranian community outside Iran—it is sometimes dubbed “Tehrangeles”—and there are plans for a rally against the Tehran regime outside the stadium in Inglewood before the match.

People carry a giant Iranian flag during a protest in response to FIFA's ban on Iran's pre-revolutionary flag inside World Cup stadiums in Inglewood, Calif., on June 7, 2026. Benjamin Hanson/AP

During the initial group stage of the World Cup, 12 groups of four teams will each play three matches in a round-robin format for a chance to advance to the later stages of competition.

Iran is in Group G, along with New Zealand, Belgium, and Egypt.

Belgium is ranked 10th in the world by FIFA, while Iran is ranked 20th, above Egypt (29th) and New Zealand (85th).

Iran is the favorite to beat New Zealand, whose team includes Tim Payne, a defender whose Instagram following went from 5,000 to 5.7 million after influencer Valen Scarsini encouraged people to make Payne famous.

All three of Iran’s group stage matches are taking place in the United States.

Iran plays Belgium on June 21, again in Los Angeles, and then travels to Seattle to face Egypt on June ​26.

Tyler Durden Mon, 06/15/2026 - 11:05

So, What Do We Know?

By Benjamin Picton, Senior Market Strategist At Rabobank

A deal is struck and the parties are reportedly set to sign on Friday of this week. Markets are jubilant after an agreement was confirmed by US, Iranian and Pakistani sources, but not without first being threatened by Israeli strikes on Hezbollah in Lebanon which prompted a telling-off by Donald Trump on Truth Social where he told everyone “don’t blow it”.

Brent crude is down more than 4% this morning to be dealing around $83.72 at time of writing and a rally in bonds late last week has carried over to this morning with Aussie and Kiwi sovereign curves both seeing notable bull steepening.

US equity futures portend the printing of a healthy green candle when markets open later today, but there’s still a lingering sense that we’re not out of the woods yet. Aside from the Israeli strikes on Hezbollah over the weekend, and the lesson of experience that the IRGC doesn’t need much convincing to return to fighting, we learned this morning that despite Donald Trump’s declaration that the strait is now open the strait will actually remain closed until the official signing occurs on Friday – ostensibly to provide time for mine clearing operations. Needless to say, a week is a long time in Middle East geopolitics.

Nevertheless, markets are rallying on the vibe right now but what is actually in the deal will be the critical points – and there is still plenty of fog of war surrounding terms. So, what do we know?

Firstly, the agreement is not really a ‘deal’ at all, or even a deal to have a deal, but rather a memorandum of understanding staking out a framework to discuss a deal over the next 60 days.

War is supposed to cease on all fronts – including Lebanon, Hormuz is supposed to open and the US blockade lifted within 30 days in a kind of oil-for-oil exchange that we have flagged here many times. Iranian sources are claiming that Hormuz transits will occur under Iranian auspices, whereas the US side is still saying no tolls. Axios reports comments from US sources that sanctions relief will follow the re-opening of Hormuz, but there seems to be disagreement over the release of frozen funds and Iranian sources are claiming reparations of some form up to $300bn in value would be payable. If true, that really would be the full enchilada of TACOs and would see the US agreeing to a set of terms that had it restart bombing only a few weeks ago. On the other hand, it could be the case that the terms are actually much more favorable to the US and that the Iranians are simply trying to save face.

#URGENT US Vice President Vance says $24B frozen funds figure 'doesn't appear anywhere' in text US discussed with Iranians, calls claim 'misrepresentation by hardliners'

— Anadolu English (@anadoluagency) June 15, 2026

Crucially, there appear to be no guarantees on the nuclear issues aside from a promise from Iran not to seek a nuclear weapon and to engage in talks over the next 60 days. Given that the nuclear program was the entire casus belli in the first place, we still see plenty of scope for this to all fall in a heap. The US midterm elections are 81 days after the expiry of the 60 day negotiating period. Could we see a few more can-kick extensions over that time? Announcing the conclusion of the deal, Donald Trump posted to Truth Social “Ships of the world, start your engines. Let the oil flow!” Start your engines indeed, because the race is now on to restock the global energy supply chain while we can.

So, at the risk of being a party pooper, could this be one of those instances of buy the rumor sell the fact? Perhaps there is no greater bear indicator than the fact that the New York Knicks just won the NBA playoffs. The last time they did that was in *checks notes* 1973, just before the Yom Kippur oil embargoes became the biggest energy shock in history up to that point. The Knicks basically top-ticked the market back then with one of the deepest bear markets of modern history (down more than 40% peak to trough) following their victory.

That brings us to SpaceX, where the largest IPO in history just raised $75 billion at a hefty valuation last week and minted another $2trillion market cap company after the stock rallied almost 20% in its first day of trading. His 42% ownership stake combined with other holdings now makes Elon Musk the world’s first trillionaire, a financial milestone event that feels a bit like the topping out of the Sears Tower as the world’s tallest building in – ahem – 1973.

Personal wealth milestones don’t have as tight a correlation with major market drawdowns as the Skyscraper Curse, but the logic follows a similar pattern: market exuberance causes asset prices to rise, minting a new cohort of billionaires, decabillionaires, centibillionaires or even trillionaires. Then reflexivity kicks in and the popular conception of whether or not it is moral for one person to hold so much wealth leads to policy changes to discourage it. Sentiment then erodes, discounted cash flows get discounted further, and eyewatering valuations start to look more dubious. That’s how we ended up with anti-trust laws in the USA, and how Australia is now seeing capital gains tax rules fiddled with to discourage real estate speculation. A cursory perusal of recent social media posts from prominent Democrats regarding Musk’s personal wealth is instructive in this regard.

That isn’t to say that a correction is imminent. Reversals take time, and a clear catalyst is yet to present itself. Perhaps it lies in the expectations of Fed rate tightening? Or perhaps in the repeated warnings of approaching tank bottom from oil market insiders, and what that might mean for the petrochemical complex, plastics, fertilizers and much of the rest of our hydrocarbon-based 21st century existence as we know it? While there is a sense this morning that a bullet has been dodged and that the “deal” renders the Hormuz black swan a shot duck, to labor the avian metaphor further we really can’t count our chickens until the ships resume transit, factories restore production, and the nuclear issue is settled.

Tyler Durden Mon, 06/15/2026 - 10:45