CoreWeave’s DEFAULT RISK is exploding higher: CoreWeave, $CRWV, 5-year credit default swap (CDS) spread surged as much as +74.5 basis points on Thursday, to a record 1,194.5 basis points, implying a more than 60% probability of default within 5 years. Meanwhile, its 9% bonds due 2031 fell ~0.5 cents on the dollar to 82.75 cents, pushing yields to 14.5%, while its 2032 bonds were quoted at ~78 cents on the dollar. At the same time, $CRWV shares bounced +5.9% after Nvidia, $NVDA, CEO Jensen Huang pushed back against concerns over CoreWeave’s financial position, saying he does not expect the AI data-center company to need a bailout from Nvidia, temporarily easing concerns over its growing reliance on external financing. Meanwhile, $CRWV shares are falling another -4% on Friday, putting them on track for their worst week since mid-August. Credit fears intensified after co-founder said CoreWeave aims to secure investment-grade credit ratings to unlock access to “unlimited” funding from insurance companies for its AI expansion. The pressure in credit markets also intensified as September US producer prices (PPI) rose at their fastest pace in more than 4 years, raising concerns over further Fed rate hikes. Investors are increasingly questioning the cost of financing the AI buildout.