Post

Pedro Biscotti
@pbiscotti.bsky.social

Read that chart as a price on the residual value guarantees. Nvidia's 5y CDS at about 116bp, and it widens just as GPU values fall. Lenders leaning on it could haircut the guarantee at that spread, unless you think RVG's are binary put and not worth it.

d3tcap.comThe guarantee is not collateralNVIDIA has agreed to backstop a quarter of its own chips’ residual value. What that promise is worth depends entirely on when you need it
Robert Smith@bondhack.ft.com

“quantitative leasing” 💀