Wealthion · Monday, November 2, 2026
Steven Feldman pointed out that the AI trade is showing cracks in its capital structure, noting that bonds for the less-established company CoreWeave have dropped to 70 cents. He argues that this serves as a canary in the coal mine for a highly capital-intensive and leveraged business environment.
“What made the news in the last couple of days is CoreWeave, a less established company. with not massive cash flow to cover... the capital needs and the debt service and the bonds cracked and they're trading like at 70 cents”
“that is the canary... to me that You know, in a very capital intensive business, there's a lot of malinvestment, something that we've discussed before. And now it's coming home to roost.”