Here’s what we have for you today:
• System performance
• Putting it down
• Potential pitfall
Trajectory of AI innovation
The claim: Nvidia CEO Jensen Huang mentioned that the AI technology powered by Nvidia’s chips will reinvent the computer itself.
Another reason: Jensen noted “The computer itself will of course process information in a very different way.”
Currently: To help reshape cloud scaling, Jensen mentioned Nvidia is giving its Grace Hopper Superchip processor a boost.
US commercial real estate debt on the sell side
Unwanted: Firms such as JPMorgan, Goldman Sachs, and Capital One are trying to sell down their commercial real estate debt holdings.
Offload: Banks might be willing to sell property loans at a discount. Yet, selling off commercial real estate debt too-low of a price can initiate fears of banking troubles.
Due date: About $1.5 trillion of US commercial real estate debt comes due for repayment before the end of 2025.
Credit rater examining US banks
The grades: Moody’s ratings downgrades and marks potential downgrades on a basket of US banks in August, 2023.
Outlook: With the stress on US banks having been mostly concentrated in funding and interest rate risk resulting from monetary policy tightening, Moody’s warned that there will be a worsening in asset quality too.
In addition: Moody’s warned that banks with sizeable unrealized losses that are not captured by their regulatory capital ratios may still be open to sudden losses of market or consumer confidence in a high interest rate environment.