CoreWeave Bonds Come Under Further Pressure

Dow Jones11-06 02:23

CoreWeave bonds are plumbing new depths as investors worry about a possible policy-induced slowdown in the AI infrastructure buildout.

The cloud computing company's 2032 bonds traded in size as low as 74.75 cents on the dollar today, according to MarketAxess, their lowest level since being issued in June. The extra yield, or spread, on the bonds relative to Treasurys touched 12 percentage points, up from 10.7 percentage points late Wednesday and around five percentage points in June.

A onetime cryptocurrency-miner, CoreWeave both competes with and services tech giants by renting out high-end chips to train and run AI models. Regulatory roadblocks could potentially delay revenues from data-center projects that are already underway, analysts said.

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