Possible scenario
AI Credit Repricing
20% Chance
Investors broaden the selloff from CoreWeave to other leveraged AI-cloud and data-center financings. The market distinguishes between hyperscalers with investment-grade balance sheets and smaller borrowers dependent on aggressive growth assumptions.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
- 10-year Treasury yield Down
Secondary impacts
- Technology -1.3%
- Finance -0.5%
- Utilities -0.3%
Portfolio impact
S&P 500-0.8%
Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.
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