SocGen Says Higher Yields May Put AI Debt Capex at Risk

Kokou Agbo-Bloua, global head of economics, cross-asset and quant research at Societe Generale Corporate and Investment Banking, said rising Treasury yields could affect the financing model for artificial intelligence capital expenditure. In an interview with Bloomberg Television, Agbo-Bloua stated that if the 10-year yield reaches 5.5% to 6% without accompanying economic growth, companies may face challenges sustaining debt-financed AI investments. The 10-year Treasury yield has been rising in recent weeks.

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