Post by @davidgerard@circumstances.run

hadn't seen this one coming. Data centre developers get funding from issuing bonds. Biggest customers is insurance companies.

The catch is: they can only buy 1/2/3% from any given entity.

With DCs, the only money comes from the tenant. So that limit applies to the tenants.

The DC developers are left with no-one to buy their gigantic bonds.

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@davidgerard there are some really good explanations about this hiding behind the simple animations of this channel: https://youtube.com/@casuallyfinance

Casual Finance - YouTube

yup!

I'm sure they'll figure out a scam involving lots of shell companies, each of which sells a small sliver of the bonds.

I mean, sure, it's probably illegal, but... that hasn't even slowed down the Circular Funding Vortex.

@davidgerard Professional opinion: ruh roh.

@davidgerard Subprime lending.