The distress comes as US firms raised $106 billion in project bonds this year, nearly triple the $37 billion raised in 2025, with global issuance potentially exceeding $300 billion in 2027. This surge has pushed broader US junk corporate bond yields to 8.41%, an 18 month high. Market participants now describe credit as diverging in a K-shape, with yields for the lowest-rated bonds spiking as lenders demand more collateral and stronger contractual payment guarantees.
Tuesday, October 20, 2026
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CoreWeave Bond Yields Hit 15% in AI Infrastructure Debt Selloff
US Markets1 day ago
Tract Capital, Prime Data Centers, and Cipher Digital have seen their bond prices drop to the lowest levels since issuance as investors rotate out of risky hardware debt. CoreWeave's junk bond yields hit 15%, a threshold associated with financial distress, while its 2031 bond issues for data centers now trade between 87 and 92 cents on the dollar. The average price for high-yield data center bonds across the sector has slumped to roughly 95 cents on the dollar, down from 101 cents in June.
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