🚨 Artificial intelligence may run on code, but the financing runs on covenants.

Wall Street closed at record highs Tuesday, with the S&P 500 up 1.8 percent, the Dow up 1.7 percent, and the Nasdaq surging 2.6 percent. Asia largely followed, led by a 3.3 percent move in Japan. The rally says investors believe earnings, lower oil prices, and AI demand can outweigh higher long term borrowing costs. 🏗️ The private capital market is sending a more complicated message.Prologis agreed to acquire SEGRO for approximately 18.8 billion dollars, creating a platform with roughly 269 billion dollars of assets under management and dramatically expanding its European land, logistics, energy, and digital infrastructure footprint. At the same time, banks are reportedly structuring approximately fifteen billion dollars of financing for a Texas data center and integrated 1.6 gigawatt power plant connected to Anthropic and backed by Google obligations. ⚡ The lesson is not that AI infrastructure cannot be financed. The lesson is that investors must distinguish construction risk from stabilized credit.A hyperscaler guarantee may support long term cash flow, but it does not automatically solve cost overruns, equipment delays, commissioning failures, fuel supply, permitting, or takeout risk. Those exposures need separate guarantees, reserves, covenants, and remedies.📊 In today’s GRO Money News, I cover the record equity rally, Asia, Treasury yields, current mortgage and CRE debt pricing, the Prologis and SEGRO transaction, the emerging bond market for data center debt, and the one page bankability memorandum every sponsor should prepare before approaching institutional capital.My hot take is simple: software may deserve software economics. The infrastructure underneath it requires project finance discipline.Listen, share, and tag someone who needs a sharper daily briefing on where serious capital is moving and what must be true before anyone wires the money.Until tomorrow, be the best human you can be.~ Teresa GrobeckerSign up for the daily newsletter on LinkedIn.Read on LinkedIn https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7354236980961886208Listen to GRO MONEY NEWS https://podcasts.apple.com/us/podcast/gro-money-news/id1833953369CA DRE 01908507 CEO and Broker of Record, Grobecker Holland International, Inc., CA DRE 01976696GRO MONEY PODcast and the accompanying newsletter are provided for informational and educational purposes only and do not constitute financial, investment, legal, tax, or accounting advice. Nothing herein is an offer to sell or a solicitation of an offer to buy any security or to participate in any investment strategy. Reliance upon any information provided is at your sole discretion and risk. Views expressed are those of the authors as of the publication date and may change without notice. While sources are believed to be reliable, no representation or warranty is made as to accuracy, completeness, or timeliness, and no duty to update is assumed. Past performance is not indicative of future results. Receipt of this content does not create a client, advisory, fiduciary, or brokerage relationship. You should consult your own licensed financial, legal, and tax advisers regarding your specific circumstances. Grobecker Holland International, its affiliates, including GRO GROUP, and their principals may hold positions or have business relationships related to companies or assets discussed.(c) 2026 Grobecker Holland International, INC. All rights reserved.