Prof G Markets · Saturday, October 24, 2026
CoreWeave experienced severe financial strain as its unsecured note yields rose to 15% and credit default swap spreads implied a 62% default probability over five years. According to podcast host Ed Elson and referencing Gil Luria, the neocloud company took on $50 billion in debt at a 9% interest rate while only generating a 1% return.
“CoreWeave had not only taken on $50 billion in debt, they'd done so at a 9% interest rate while generating a 1% return.”