CoreWeave bond yield tops 16% as AI credit stress rises

fnord77

totally crazy that Google has bonds yielding 5.68% That's a great return for practically zero risk. (If google defaults on bonds there's much bigger problems in the world than the loss of your capital)

Refreeze5224

Now let's see Anthropic sell enough of its junk bonds to cover its half a billion in non-cancelable obligations.

bix6

So there’s a chance I can pickup some discounted GPUs next year?

jeffbee

It almost reads like a semiconductor process report.

danielodievich

Just last week I was on the call with a a techy architect from one of the major-major financial services companies, and he was discussing getting token capacity and his words on third best option was "we'd get it from Coreweave or whoever is still alive". So yeah, I am pretty sure that if that's the sentiment from software people at the major-major financial company, Coreweave is cooked.

holysoles

Aside from the price signal, the fact they were issuing these at a 9.625% coupon rate continues to run up their future debt servicing costs. Coreweave doesnt seem to be in a winner-take-all sector, they have a narrow moat and will have high ongoing capex. I struggle to see how they dont go under eventually even with the ability to restructure debt

trescenzi

That’s edging up on credit card rates for strong borrowers wild. NerdWallet has Chase Freedom with a lower bound of 18.49% and Citi Diamond Preferred with 16.74%. https://www.nerdwallet.com/credit-cards/best

Alien1Being

Fraudulent circular accounting is so very entertaining.

treebeard901

No Chinese honey traps for the Coreweave CEO for the foreseeable future