CoreWeave credit default swaps hit distress levels as investors sour on AI debt

CoreWeave's five-year credit default swap spread rose above 1,140 basis points at one point and last stood at 1,088, a 33% weekly jump, which CNBC says signals credit distress.

CoreWeave, which has taken on more than $51 billion of debt and obligations, saw its stock fall 15.5% Wednesday, and Evercore ISI said the market is saying no more to AI debt without operating cash flow support.

CoreWeave CEO Mike Intrator said the backlog, over $100 billion with about two-thirds from investment-grade counterparts, supports its debt obligations.