CoreWeave's bonds now yield over 15%. Here is what that signals
A $50 billion debt load, a record insurance cost and a 22% weekly share drop show how fears of higher interest rates reach AI companies through their borrowing costs.
A bond yield is the return an investor earns by holding a bond at its current market price. When the price falls, the yield rises. That mechanical link is the whole story behind a striking number this week: CoreWeave, the AI data-center company, saw one of its bonds yield more than 16%.
According to Reuters, the company's October 2031 dollar bond yield briefly topped…
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