A personal editorial view, read aloud – not investment advice.

Low volatility is not the absence of risk – it is risk moved somewhere it no longer has to be counted. This episode argues that the AI build-out is the largest version of that trade ever built.

It starts with the 2018 collapse of XIV, the note that sold calm and returned 585% until it lost 96% in a single day, and traces carry – the family of trades that earn a steady income for assuming stability holds, from the trader selling a put to the company buying back its stock to the central banks that have spent thirty years promising disorder will not be allowed to persist. Then it asks where that logic shows most clearly today, and lands on the financing edge of the AI build-out: the labs' compute commitments, the off-balance-sheet "shadow borrowing," and the circular flows between Nvidia, OpenAI, and CoreWeave.

The other side gets its hearing – this may be infrastructure, not carry, the way railways and fiber once were. So the piece ends where most commentary won't: a written-down level at which the author is wrong.

With thanks to Ahmed Husain, whose newsletter and podcast The Curious Mind first put The Rise of Carry in my hands.

A personal editorial view, read aloud – not investment advice.