Overview
- Credit markets have priced higher Broadcom risk in August as yields on its 2031 bonds climbed about 14 basis points and five‑year credit default swaps widened roughly 28 basis points.
- Reports show Broadcom is negotiating to guarantee part of a more than $60 billion debt package that would fund custom AI chips for customers including Anthropic.
- Earlier in 2026 Broadcom agreed to backstop most of a separate $35 billion financing that private investors including Apollo and Blackstone used to lease chips to Anthropic.
- Analysts warn these supplier guarantees, lease vehicles, and residual‑value commitments create off‑balance‑sheet or 'phantom' leverage that could force payments if AI spending slows.
- Market watchers say the next steps to watch are the final structure of the $60B+ deal, any formal guarantees Broadcom signs, how rating agencies react, and whether broader investor concern pushes further funding costs higher.