CoreWeave's $2bn unsecured bond sell-off has sparked comparisons to Silicon Valley Bank's 2023 collapse, but Barclays' Ajay Rajadhyaksha argues the panic is overblown. He contends that investors are misreading CoreWeave's $35bn debt structure, where the unsecured bonds rank lowest in priority behind secured loans and convertibles. Unlike SVB, CoreWeave's secured delayed-draw term loans (DDTLs) remain open, with recent deals priced at SOFR+225bp to SOFR+550bp.
The equity bridge via convertible bonds also shows demand, with September's deal upsized to $3.7bn. Rajadhyaksha emphasizes that CoreWeave's strong order backlog alone can fund its capex plans, and the unsecured bond yield of 15% reflects its specific risk, not systemic AI CapEx failure. Markets, he argues, are wrongly using a volatile instrument as a barometer for the entire AI investment cycle.
Source: Financial Times Companies · Summarized by HeadlinesBriefing