CoreWeave's Debt Stress Tests Private Credit's AI Financing Boom

An anonymous reader quotes a report from Reuters: Private credit’s expanding role in financing AI infrastructure faced one of its clearest market tests this week as CoreWeave’s bonds fell to distressed levels, raising questions about how lenders are pricing a boom built on chips, data centers and customer contracts. CoreWeave has about $50 billion of debt, according to LSEG data, making it one of the largest borrowers linking private credit to the AI buildout. The cost of insuring its debt against default climbed to about 1,200 basis points this week, while yields on some of its bonds rose to