CoreWeave credit default swaps hit record as Huang rejects need for backstop

CoreWeave's five-year credit default swaps reached a record intraday 1,194.5 basis points on Thursday, The Next Web reported, citing ICE Data Services. The contracts, which provide protection against default, rose by as much as 74.5 basis points and priced a more than 60% chance of default within five years. Nvidia CEO Jensen Huang told Bloomberg in Stockholm that CoreWeave's financial strength was improving, its cost of capital was decreasing and Nvidia did not need to backstop it. Nvidia holds about 10% of CoreWeave and supplies its chips. CoreWeave's debt stood at about $30B in June, against a speculative-grade rating.