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Credit concerns persist for CoreWeave and Oracle despite AI stock rebound

CNBC ·

ORCL Oracle Corp
$131.14 +1.20%
View chart & analysis →
CRWV +1.65%
  1. 1AI-related stocks rebounded on Monday, but CoreWeave closed slightly lower amid debt concerns and Oracle bond yields remained high
  2. 2The yield on CoreWeave's 9.625% bonds maturing in 2032 is 14.9%, and its 5-year CDS spread is approximately 1,082bp, indicating distressed levels
  3. 3Oracle's 5-year CDS spread is 315bp, up 311% from a year ago, and Rosenberg described Oracle as a canary in a coal mine

So what's the key point?

AI stocks rose, but CoreWeave fell slightly due to debt worries. The interest on the money this company borrowed and the costs acting as insurance remain at high levels.

Source CNBC · View original ↗

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