CoreWeave Bond Yield Tops 16%, AI Credit Stress Rises

The yield on CoreWeave's bonds maturing in 2032 with a 9.625% coupon has climbed above 16%, and its five-year credit default swaps (CDS) briefly exceeded 1289 basis points on Thursday. Default protection costs for AI-related companies have broadly risen, with Nvidia's CDS up 76% over the past month, Broadcom up 49%, and Amazon up 44%. According to Goldman Sachs, since October 29 there have been five AI bond deals totaling $67 billion; hyperscaler bond issuance this year has reached $296 billion, and it forecasts $440 billion next year.