From TradingView · · 1m 10s
CoreWeave debt crisis deepens with record CDS spreads
CoreWeave’s debt crisis worsens as CDS spreads hit record highs, signaling over 50% default risk within five years.
In brief
CoreWeave’s debt crisis worsens as CDS spreads hit record highs, signaling over 50% default risk within five years. CoreWeave faces over 50% default probability within five years due to record CDS spreads and $52 billion debt. Originally reported by TradingView.
CoreWeave debt crisis deepens
CoreWeave’s debt crisis deepens as CDS spreads hit record highs for NASDAQ:CRWV.
Debt load intensifies
CoreWeave raised over 35 billion dollars this year alone, carrying 52 billion dollars in debt and lease obligations.
Net interest expense
The company pays 640 million dollars in net interest expense last quarter, about a quarter of revenue.
Maturity risk
With 13.5 billion dollars in principal and interest due next year against revenue of only 10 billion dollars.
Contracted backlog
CoreWeave holds 104 billion dollars in contracted backlog but requires continuous external funding to build data centers.
Bond market stress
CoreWeave’s 2032 unsecured notes trade at a yield above 15%, implying bonds change hands below 80 cents on the dollar.
CDS spread record
The company’s credit default swap spread spiked to a record 982 basis points, indicating over 50% default probability within five years.
The big picture
CoreWeave faces over 50% default probability within five years due to record CDS spreads and $52 billion debt.
