Bloomberg Surveillance · Wednesday, July 29, 2026
The rising cost of capital, particularly for hyperscale companies, is becoming a significant concern. Increased yields on long-term Treasuries, driven by Fed policy uncertainty, are making financing more expensive for these firms, potentially impacting future investments in areas like data center build-outs.
“Well, that's exactly the discussion because not only, of course, have spreads on hyperscalers widen out and CDs as also widened out. Now the base rate has also moved up and in this. Case actually much more than spreads and widen out, So they're all in yield for financings. Of course, in the public market for hyperscalers have definitely increased quite significantly.”
“The value of the dollar on the global stage goes down, and we're seeing that in a pretty big way. It is notable to see the long end of the yield curve in particular perform this way. And has Torsen made a good point about the hyperscalers. They have been issuing disproportionately at the long end of the yield curve. They have issued more on the long end than the US government, And you have to wonder how much this is going to constrain some of the productivity and the virtuous aspects of what a lot of people are expecting and prolong the uncomfortable mismatch period that he was talking about.”
“Well, that's exactly the discussion because not only, of course, have spreads on hyperscalers widen out and CDs as also widened out. Now the base rate has also moved up and in this. Case actually much more than spreads and widen out, So they're all in yield for financings. Of course, in the public market for hyperscalers have definitely increased quite significantly.”