CoreWeave CDS spread jumps 33% amid $51B AI debt concerns
CoreWeave is making headlines as its credit default swaps, a kind of insurance for investors, spiked sharply, signaling big worries about the company's ability to manage its more than $51 billion of debt and obligations to finance its AI infrastructure buildout.
The CDS spread shot up 33% in just one week, and the stock kept sliding after a steep drop on Wednesday.
It's got people questioning how stable these fast-growing AI companies really are.
CoreWeave bond yields hit 15.78%
Investor nerves showed up elsewhere too: CoreWeave's bond yields jumped to 15.78%, and other AI stocks like Nebius and Iren also took a hit.
Still, not everyone is gloomy, Deutsche Bank pointed out that CoreWeave has more than $100 billion in contracts lined up, hinting the company could bounce back if it can turn those deals into real revenue.