The credit stress follows a crash in AI infrastructure debt issuance, which plummeted from $113B in June to $23B last month. While US firms raised $106B via high-grade and high-yield bonds for projects this year—nearly triple the $37B raised in 2025—investors are now demanding more collateral and stronger payment guarantees. Broader US junk corporate bond yields have spiked to 8.41%, the highest level in 18 months, as CoreWeave's junk bond yields reached 15%.
Tuesday, October 20, 2026
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AI Debt Slump Drives CoreWeave Bonds to 79 Cents
US Markets10 hours ago
June 2030 dollar-denominated securities from CoreWeave fell by 2.2 cents to 83.10 cents of par on Oct 20, while October 2031 maturity bonds dropped 2.3 cents to 79.46 cents. This acceleration in selling pressure follows a sector-wide decline where high-yield data center bonds averaged 95 cents on the dollar, down from 101 cents in June. Bonds linked to Cipher Digital, Prime Data Centers, and Tract Capital have also hit their lowest prices since issuance.
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