Behind the Markets Podcast · Friday, July 24, 2026
Jeremy Schwartz observes that "hyper-scalers" or Mag Seven companies have funding for their expansion efforts underwater, leading to increased CDS spreads. He finds it remarkable that a trillion-dollar company is facing such risk premiums.
“I think every single bond, and who might be able to, uh, verify this, that the, you know, the Mag Seven or hyper scalers put out earlier to help fund their expansion is underwater.”
“And so only the CDS spreads have come up on on all of them.”
“I mean, it's incredible for trillion dollar company to have a big risk premium when it has a trillion dollars of equity cushion theoretically.”