CoreWeave 2032 bond yield tops 16% as AI credit stress rises
Original title: CoreWeave bond yield tops 16% as AI credit stress rises
Its five-year credit default swaps spiked above 1,289 basis points Thursday, then eased to about 1,155 Friday.
The yield on CoreWeave’s 2032 bond with a 9.625% coupon has climbed above 16%, and its five-year credit default swaps widened past their October peak before easing Friday. Credit markets are also pricing more default protection on Nvidia, Broadcom, Amazon, and Oracle debt, though those spreads remain far below CoreWeave’s. Analysts link the stress to possible data-center delays under incoming Democratic governors and heavy hyperscaler borrowing, while the Trump administration says growth should continue as forecast.
Unconfirmed: Forecasts that Democratic governors will delay or scrap data-center projects remain political and analyst projections, not confirmed cancellations.
- Nvidia CDS rose 76% in a month to roughly 139 basis points.
- Broadcom CDS is up 49% and Amazon’s 44% over the same period.
- Goldman says moratoriums could affect 45% of planned U.S. capacity.
- Goldman counts $67 billion in five AI bond deals since October 29.
- Bank of America estimates AI-related credit issuance of $685 billion in 2027.
- Countries
- United States
From the original article
3 min read at cnbc.com
Debt markets are sending a message to AI data center builders: we're hiking the interest rate on your credit card and may put some new curbs on your credit limit. That analogy comes courtesy of Jefferies global head of equity strategy, Christopher Wood, who put it in a note on Friday: "The most plausible way the AI capex arms race will end is that the credit card will be taken away."
By lxm · cnbc.com
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