CoreWeave bond yield rises above 16% as AI credit stress grows
Overview
CoreWeave's 2032 bond, which carries a 9.625% coupon, has climbed above 16%, according to a Hacker News report of Deutsche Bank data.
Deutsche Bank also says CoreWeave's five-year credit default swaps spiked above 1,289 basis points on Thursday, meaning the cost of insuring against its default rose sharply.
CNBC reports that investors are also paying more for default protection on larger issuers such as Nvidia, Broadcom, and Amazon, though those spreads remain low. Goldman Sachs says moratoriums in Ohio, Texas, and Georgia could affect 45% of planned U.S. data center capacity.
Written by AI from the articles below · updated Nov 10, 5:58 AM ET
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- Hacker News · AI (150+ points)BlogCoreWeave bond yield tops 16% as AI credit stress rises
AICoreWeave's 2032 bond with a 9.625% coupon has climbed above 16%, and its five-year credit default swaps spiked above 1,289 basis points on Thursday, according to Deutsche Bank. CNBC reports that investors are also demanding more protection against default from larger issuers such as Nvidia, Broadcom, and Amazon, though their spreads remain low. Goldman Sachs says moratoriums in Ohio, Texas, and Georgia could affect 45% of planned U.S. data center capacity.
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