QCP Says AI Credit Risk Has Replaced Inflation as Market Focus

QCP Capital said credit risk at AI infrastructure companies has displaced inflation as the main market concern, while a new MSCI screen may put Bitcoin (BTC) treasury company Strategy at risk of index removal.

U.S. consumer prices rose 3.7% year over year in September, above expectations. CoreWeave shares fell 15.5% in one session. Separately, Treasury yields retreated from recent highs as investors sought long-term government bonds as a safe haven.

As technology company earnings approach, QCP expects investors to examine AI infrastructure companies’ leverage and ability to repay debt, and assess whether credit pressure may spread.

MSCI’s screen for non-operating companies could affect Strategy’s index eligibility, though its exclusion is not final. MSCI plans to publish the affected-company list Nov. 11, ahead of implementation on Nov. 30. The MSCI exclusion rule could matter to institutional portfolios that use its indexes as benchmarks.