CoreWeave Debt Hits Distress Level as AI Neocloud Sector Sells Off

CoreWeave's debt has entered distress territory, with credit default swap spreads exceeding 11% and unsecured notes due in 2031 and 2032 yielding more than 15%, while shares of CoreWeave, Nebius, and IREN have declined by more than 30% this month amid a broader sell-off in AI infrastructure.