CoreWeave's credit default swaps widened to levels generally seen as distressed
CNBC says the five-year credit default swap spread on CoreWeave last stood at nearly 1,038 basis points, a 16% week-over-week jump. S&P Global Market Intelligence's Gavan Nolan says a spread of 1,000 basis points or above is generally a sign of credit distress. CoreWeave has taken on more than $51 billion of debt and obligations to finance its AI infrastructure build-out.
NoteThe CEO says the backlog more than supports its debt obligations, and the open question is whether the cash flows will ultimately arrive.
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