AI May Be The Boom, But Private Credit Could Be The Fuse

Nelson Alves3.83K FollowersFollow5ShareSavePlay(12min)CommentsSummaryThe market is mostly analyzing two stories in isolation. One is the AI infrastructure boom, and the other is the quiet stress beginning to show up in private credit. The more interesting question is what happens if those two stories are not separate.The risk is not that AI infrastructure is imaginary. The risk is that some meaningful share of the buildout may be funded through structures that suppress visible volatility, defer price discovery, and assume capital remains patient.The intuitive mistake investors make is to think that if an asset class is illiquid, it is insulated. In practice, illiquidity can do the opposite. J Studios/DigitalVision via Getty Images The market is mostly analyzing two stories in isolation. One is the AI infrastructure boom: chips, power, campuses, GPU clouds, AI factories, and multi-hundred billion-dollar capex plans. The other is the quiet stress beginning to show up in private credit: gated vehicles, semi-liquid fundsThis article was written byNelson Alves3.83K FollowersFollowEx-trading desk at tradfi bankHead of Investment Research at KRIMaster in Finance