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Market Chatter: Nvidia-Linked Data Center Raises $4.6 Billion From Junk Bond Sale

A Nevada data center project tied to Nvidia (NVDA) has raised $4.59 billion through a junk-bond sale, underscoring a rise in deals for AI infrastructure funding, Bloomberg reported on Tuesday, citing a person familiar with the matter.The deal, backed by Tract Capital Management and Fleet Data Centers, priced five-year notes at a 6.74% yield, the report said.The project, a 200-megawatt facility in Nevada, is expected to be leased to Nvidia.The deal was priced during broader volatility in data center-linked stocks and bonds, as concerns grow over whether the rapid expansion in AI-related spending will deliver expected returns, Bloomberg said.Nvidia did not immediately respond to' request for comment.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Update: Canada's Federal Gov't Projects a Smaller Deficit For FY2025-26 Than Previously Seen

(Updates with BMO commentary in the fifth to seven paragraphs inclusive)Canada's federal government now projects a deficit in fiscal year 2025-26 of C$66.9 billion, down from a prior forecast of $78.3 billion, reflecting improved economic growth, it said in a spring economic update Tuesday.The deficit is set to gradually decline to C$56.2 billion by FY29-30, the government said.An extra $60.3 billion in revenues has allowed the government to add $37.5 billion in spending, it addedProjected GDP Growth is 1.1% in 2026, 1.9% in each of the next three years, and 1.8% in 2030, the governing Liberals said.BMO in an overnight note said the federal government "may have revamped its budget cycle, but it kept the same theme going: higher spending washing out better revenues, leading to persistent deficits".BMO noted the federal government is projecting a $65 billion shortfall for FY26-27, amounting to just under 2% of GDP. "That's only a touch better than last year's estimate, now pegged at $67 billion, with little progress expected as deficits remain sizeable through FY30-31," it said.The bottom Line for BMO: "The Canadian economy has held up better than expected at the time of the Fall budget. However, the resulting stronger revenues have been offset by higher spending commitments with no path to balance in sight."

Small Firms Are "Payroll Intensive", So Cut In CPP Premium Rate from 9.9% to 9.5% Will Put $3B "Back Into Pockets" of Employees and Payroll Budgets of Employer, says CFIB