The duration-and-discount-rate framework you present explains why bear steepening in the long end compresses AI infrastructure valuations more than cyclical semis or licensing/royalty based businesses — a cross-current most AI commentary misses. The cash flow timing lens is portable to other sectors too, making it so useful.
On a related note, if the conflict continues, will Seoul follow Tokyo and negotiate safe passage rights of Korean crude?
Seoul has already supported practical crude transport routes. In April, Korea backed crude transport through the Red Sea route. A May 21 (KST) report says one Korean VLCC passed Hormuz with crude for SK Innovation.
The duration-and-discount-rate framework you present explains why bear steepening in the long end compresses AI infrastructure valuations more than cyclical semis or licensing/royalty based businesses — a cross-current most AI commentary misses. The cash flow timing lens is portable to other sectors too, making it so useful.
On a related note, if the conflict continues, will Seoul follow Tokyo and negotiate safe passage rights of Korean crude?
Good question.
Seoul has already supported practical crude transport routes. In April, Korea backed crude transport through the Red Sea route. A May 21 (KST) report says one Korean VLCC passed Hormuz with crude for SK Innovation.
I would read this as operational risk management.
Significant. The SK Innovation transit on top of April Red Sea support tells you Korea made this call weeks ago. Thanks for the on-the-ground detail.
As always, a very good article.