Speaking to CNBC from the International Monetary Fund /The World Bank Group Annual Meetings in Bangkok, one issue I focused on was the extraordinary capital intensity of the AI build-out & the disparity between the bond and equity markets.
As AI (SI?) and energy security are reshaping the global economy, there is a mounting pressure in the debt financing side.
Given tech can become obsolete much faster than longdated debt gets repaid, the real question is who earns the economics and who is left holding the duration and financing risk?
As Kevin Warsh emphasised today in Bangkok, the AI revolution will create extraordinary value in the medium term. However, capital markets are now beginning the harder job of determining where that value actually accrues - and equity markets need to follow suit.
#AI #IMFMeetings #CapitalMarkets #Geopolitics Tanto Capital Partners
As AI (SI?) and energy security are reshaping the global economy, there is a mounting pressure in the debt financing side.
Given tech can become obsolete much faster than longdated debt gets repaid, the real question is who earns the economics and who is left holding the duration and financing risk?
As Kevin Warsh emphasised today in Bangkok, the AI revolution will create extraordinary value in the medium term. However, capital markets are now beginning the harder job of determining where that value actually accrues - and equity markets need to follow suit.
#AI #IMFMeetings #CapitalMarkets #Geopolitics Tanto Capital Partners
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