COREWEAVE CREDIT DEFAULT SWAPS HIT DISTRESS LEVELS AS INVESTORS SOUR ON AI DEBT

Summary from the TLDR newsletter

CoreWeave has taken on more than $51 billion of debt and obligations to finance its AI infrastructure buildout. Stock and bond investors are now showing signs of being concerned about AI overspending and debt levels. Yields on CoreWeave debt continue to climb. The spread on its five-year credit default swaps has soared. No one is questioning whether demand for CoreWeave's services is real, but the cash flow needs to arrive to justify all of the capex spending.