COREWEAVE DEBT INSURANCE COSTS JUST HIT A RECORD . CAN IT KEEP FUNDING ITS AI BOOM ?

What happened: The spread on CoreWeave's (NASDAQ:CRWV) five-year credit default swaps reached a record level on Thursday, signaling investors are demanding more protection against a potential default. Key numbers: CDS spread stood at 1,038 basis points by midday, up 164% year over year. Why it matters: Rising CDS rates indicate the market is growing less comfortable with CoreWeave's debt-funded model. Future borrowing or refinancing could become more expensive, and if lenders demand higher rates, default chances rise as cash flows face more pressure.

The spread on CoreWeave's (NASDAQ:CRWV) five-year credit default swaps reached a record level on Thursday, signaling investors are demanding more protection against a potential default.

Rising CDS rates indicate the market is growing less comfortable with CoreWeave's debt-funded model. Future borrowing or refinancing could become more expensive, and if lenders demand higher rates, default chances rise as cash flows face more pressure.