Neocloud bonds trade in the mid-teens, making off-taker prepayments the cheapest capital in the stack

jfischoff · x · 2026-11-06

Emir Lise on the GPU-cloud capital stack: Neocloud bonds are now trading in the mid-teens. At that cost of debt, the cheapest capital is no longer the lender — it's the off-taker prepayment.

Private credit firms see this and are hunting for new ways to participate and de-risk
Prepayments are evolving from deposits into stakes in residual value: purchase options, step-in rights, even title to the hardware
If you fund the capex and take the residual, you're not renting anymore — "everyone just got one step closer to the inevitable"

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Neocloud bonds trade in the mid-teens, making off-taker prepayments the cheapest capital in the stack

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