CoreWeave Bond Yield Tops 16% as AI Debt Costs Rise
The company’s 2032 bond yield climbed above 16% as investors sought more protection against default across AI-related borrowers.
Key takeaways
- CoreWeave’s 2032 bond yield rose above 16%.
- Its five-year credit default swaps topped 1,289 basis points on Thursday.
- Goldman Sachs cited potential data-center moratoriums as a risk to planned capacity.
The yield on CoreWeave’s 2032 bond, which carries a 9.625% coupon, climbed above 16% as credit markets grew more cautious about AI data-center financing.
The company’s five-year credit default swaps, which offer protection against default, rose above 1,289 basis points on Thursday, according to Deutsche Bank. They eased 8% on Friday to around 1,155.
Investors are also seeking more protection against default among large companies including Nvidia, Broadcom and Amazon. Their credit default swap spreads have risen over the past month, though they remain low in absolute terms, CNBC reported.
Political opposition to data-center development is adding to concern about future spending. Goldman Sachs said moratoriums could affect 45% of planned U.S. capacity, with much of that in Texas.
AI borrowing continues: Goldman counted five AI bond deals totaling $67 billion since Oct. 29. It forecasts $440 billion in hyperscaler debt issuance next year, plus $300 billion in project-level issuance, while warning that delayed monetization and higher cash commitments pose risks.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
