[FLASH] CoreWeave bond yields top 15% and CDS hit a record; Nvidia's Huang says no backstop is needed
MarketWatch reported that CoreWeave's unsecured bonds traded around 81 cents on the dollar on Oct 14, yielding more than 15%, and that the shares fell 15.5% that day. 24/7 Wall St. reported Nebius and Oracle trading lower alongside it. On Oct 15, TNW reported that five-year CDS reached a record of about 1,194.5bp intraday, while Nvidia CEO Jensen Huang told Bloomberg that CoreWeave's cost of capital is falling and Nvidia does not need to backstop it. TNW notes Nvidia owns about 10% of CoreWeave and supplies its chips. The bonds and CDS are now being read as a test of debt-financed AI capacity; watch whether the chip-backed debt wins investment-grade ratings and how the CDS level moves.