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Edward Dowd, founding partner at OceanSquare Asset Mgmt and ex-BlackRock executive, discusses the impact of AI financing on credit markets and highlights Oracle's decision to cite force majeure for permitting delays.
Dowd points out that force majeure clauses are generally reserved for extraordinary events like war or natural disasters, not standard project risks. He questions what Oracle's invocation of this clause may indicate about its financial position.
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Dowd has previously argued that China is facing significant economic challenges and cannot depend on exports to resolve its problems, as detailed in an earlier analysis. In a separate note, he observed that Nvidia's days sales outstanding (DSO) rose sharply while management broke precedent with a full year revenue guidance above consensus. These observations reflect Dowd's continued focus on key shifts in global business performance.