CoreWeave bond yield exceeds 16% — CNBC
In the United States, the yield on 2032 bonds of AI cloud infrastructure provider CoreWeave exceeded 16%. The coupon on these securities is 9.625%. This reflects growing investor concerns about financing the AI infrastructure boom, CNBC reports.
Rising cost of debt insurance
According to Deutsche Bank, five-year CoreWeave credit default swaps — instruments for insuring against default — jumped above 1,289 basis points on Thursday, surpassing the October peak. On Friday, the indicator fell by 8%, to about 1,155 basis points.
The cost of debt insurance has also risen for major technology companies. Over the past month, Nvidia CDS increased by 76%, Broadcom by 49%, and Amazon by 44%. At the same time, their indicators remain substantially lower than CoreWeave's: Nvidia's spread stood at about 139 basis points, Oracle's at approximately 298, and CoreWeave's at about 1,100.
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Risks for data centers
The market is also factoring in possible delays or cancellations of some data center spending due to political obstacles in Ohio, Texas, and Georgia, where a significant share of new capacity is planned. Goldman Sachs estimates that moratoriums could affect 45% of planned capacity in the United States, with a substantial portion located in Texas.
At the same time, financing for AI infrastructure has not stopped. Goldman Sachs counted five AI-related bond issues totaling $67 billion since October 29. The total volume of hyperscaler debt issuance this year, according to the bank's estimate, reached $296 billion. For next year, Goldman Sachs forecasts $440 billion in such debt and another $300 billion in investment-grade and high-yield project borrowing.
Borrowing forecasts
Bank of America analysts expect AI-related debt issuance to rise by 31% from 2026 to 2027, to $685 billion, including public and private debt. In 2028, they forecast a 23% decline to $531 billion. Goldman Sachs noted that hyperscalers collectively recorded negative free cash flow in the third quarter, as capital expenditures exceeded operating cash flow.
