THIS AI COMPANY LOADED WITH DEBT IS GIVING EVERYONE THE HEEBIE JEEBIES

What happened: CoreWeave's $1.25 billion junk bond, issued in June at 9.625%, saw its yield rise above 15% about four months later, falling to distressed levels amid a broader AI bond selloff. Key numbers: $1.25 billion bond expiring 2032; 9.625% issue rate; yield above 15%; five-year CDS at a record 1,194.5 basis points, implying more than a 60% chance of default Why it matters: The repricing raises questions about what future bond issuances will cost CoreWeave and whether lenders get repaid. The content frames falling GPU prices, not bond yields, as the existential threat to the company.

CoreWeave's $1.25 billion junk bond, issued in June at 9.625%, saw its yield rise above 15% about four months later, falling to distressed levels amid a broader AI bond selloff.

The repricing raises questions about what future bond issuances will cost CoreWeave and whether lenders get repaid. The content frames falling GPU prices, not bond yields, as the existential threat to the company.