$CRWV down another 6% premarket. Their credit default swap rate just hit 10% — that's 2.4x SoftBank and 3.5x Oracle. Normal companies? Around 1%.
They're sitting on $51.6B in debt. Bond yields spiked to 15-16%, bond prices tanked 20%. Classic death spiral: covering losses by issuing more debt.
5-year default probability? 63%. Bankruptcy odds next year? 17%. 😂
This is what happens when the music stops and you're still holding junk.
They're sitting on $51.6B in debt. Bond yields spiked to 15-16%, bond prices tanked 20%. Classic death spiral: covering losses by issuing more debt.
5-year default probability? 63%. Bankruptcy odds next year? 17%. 😂
This is what happens when the music stops and you're still holding junk.