Thoma Bravo Founder, Treasury Bond Auction, Terawulf Exclusive 9/10/26

SPEAKER_1 (0:00)

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SPEAKER_2 (0:30)

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Brian Sullivan (1:03)

Borrowing costs pop as oil hits a hundred bucks a barrel. Again, welcome to Power Lunch alongside Kelly, I, and Brian. We got a huge hour ahead. Noted tech investor, Orlando Bravo, is here in the house talking tech, investments, bonds, and more. He will join us in moments for an extended and exclusive conversation.

Kelly Evans (1:20)

Plus an AI power player, Terawulf is making a high stakes bet, she said, on the infrastructure powering the AI boom, building large-scale digital capacity designed for the most demanding high-performance compute. CEO Paul Prager joins us today.

Brian Sullivan (1:36)

It is a big hour and there's a lot to get to, not the least of which is oil, back to a hundred bucks a barrel here in the States.

While that going up is going to impact what you pay at the pump, along of course with trucking and shipping costs and diesel, the bigger economic question may be whether those prices are going to start impacting the broader economy.

On top of higher gasoline prices, many of you out there are no doubt facing kind of the quadruple whammy. Higher food, higher health care, higher insurance costs all over the last five years. Through that, stocks have held up well. Yeah, they're down a little bit right now, but keep in mind, just a few percent from all-time highs. And now, many of the investors looking in next week and the Federal Reserve and at the Wednesday meeting, traders now see a nearly 70% chance of at least a quarter point hike from about 64% before the PPI number came out earlier today. The bond market also in focus. Ten-year yield, creeping. Look at that.

It's a big story, Kelly.

Kelly Evans (2:33)

$4.94. We are probably up almost 11 basis points now today in one single day. The two-year $4.56 now across the curve, which are the highest levels since Gen 1 In some cases, that 30-year auction last hour was auctioned at the highest yield since 2001 It's at 535 right now.

Brian Sullivan (2:50)

Yeah. We are nearing the highest 10-year yield since, well, two years or three years ago. We are awaiting the results of the Treasury $6 billion buyback operation that just actually took place. We're going to get those results in moments, but let's talk all of this with a very special guest.

One so special, we even put breaking news animation up for you, Orlando Bravo. He is founder and managing partner at Thoma Bravo. Orlando, great to have you.

Orlando Bravo (3:14)

Great to be here in New Jersey with both of you. I actually love it here.

Brian Sullivan (3:18)

Do you really?

Orlando Bravo (3:18)

I really do.

Brian Sullivan (3:19)

Let's switch spots because you're in Miami. We're happy to take the show down there. We love the state income tax rate.

Orlando Bravo (3:24)

Come over anytime. It's great.

Brian Sullivan (3:26)

All right. So 4.94 percent. We're probably going to hit five. You're a professional investor. I know you don't trade bonds. I get it. But will 5 percent or even a little higher than that, will that kill the markets, kill the economy, kill private equity?

Orlando Bravo (3:40)

We're already getting hit pretty hard because we're in software.

So given people's lack of understanding of AI and software, we're paying in our companies, 80 companies. We had to refinance already $20 billion of debt in the last year and a half, and we're paying rates or spreads that are 150 to 200 basis points wider. Does that kill us or kill the economy or kill software? Absolutely not because as owners of companies, and that's how people adjust, we just have to cut more cost or grow the earnings more through innovation. So we adapt to that environment. Now, we all know, and this is well documented, that we have a P&L problem in the country.