Cassandra Unchained

Per Torsten Slok,87% of VC funding is AI, 49% of Investment Grade bond issuance is AI, and 38% of high yield bond issuance is AI. During the internet boom, in 1999, less than 40% of VC funding was for the internet. Broadening to the wider tech-media-telecom bubble, in 1999 VC funding hit 80% TMT. TMT bonds were 40-50% of the high yield bond issuance in 2000 and just 25-30% of total investment grade bond issuance. 19999-2000 era VC funds were horrific. It was a complete lost decade. Over $100B investment grade debt issued in 1999-2000 became junk by 2002. High yield debt at 38% today vs 40%-50% back then belies the idea that today's AI debt issuance is cleaner. Debt issuance always starts out clean. That's how it gets sold.