One of the biggest players in the AI data center buildout is CoreWeave. Its business model relies heavily on debt, often highly leveraged loans secured by the GPUs and chips themselves.

Investors are worried about two things:

First, a small number of large customers account for much of the demand for this capacity.

Second, chips and GPUs can become outdated quickly, possibly before the debt used to buy them is paid off.

That concern is driving a flight to safety. Investors are moving money out of riskier corporate debt and into safer assets like Treasuries and mortgage-backed securities.

That buying pressure is pushing yields and mortgage rates lower, even with hotter CPI and PPI numbers.

The market is taking care of itself. FEDs don’t raise rates…

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