CoreWeave bond yield tops 16% as AI credit stress rises

Re:CoreWeave bond yield tops 16% as AI credit stress rises by ion_trapper on Monday November 09, 2026 @11:32PM (#50436090)

The yield is bounded from below by the treasury yield, which is just a little lower - and with the treasury you have really big problems if they default! But realistically the US will inflate its currency rather than default, so the yield is really just reflecting expected future inflation. It’s not as great a deal as it seems. Bonds are probably the most fairly priced assets in the world.

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Re:CoreWeave bond yield tops 16% as AI credit stress rises by maerF0x0 on Monday November 09, 2026 @11:43PM (#50436145)

If by fairly priced you mean so competitively priced that essentially all the real profit has been taken out.

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Re:CoreWeave bond yield tops 16% as AI credit stress rises by panicinducer on Tuesday November 10, 2026 @12:03AM (#50436281)

What else would fairly priced mean?

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Re:CoreWeave bond yield tops 16% as AI credit stress rises by maerF0x0 on Tuesday November 10, 2026 @12:17AM (#50436357)

Fair could be construed as "the layers of market participants receive a share of the profits" . As far as I can tell there is essentially none left, and thats because folks will bid it down to 0 profit because they're lending others' money. (they're only responsible for their opportunity cost, but even 1% on others money is a good deal for the bank)

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Re:CoreWeave bond yield tops 16% as AI credit stress rises by neural_thing on Tuesday November 10, 2026 @12:05AM (#50436287)

I'm old enough to remember Argentina issue a 100 year bond with an 8% yield.

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Re:CoreWeave bond yield tops 16% as AI credit stress rises by umeshunni on Tuesday November 10, 2026 @12:24AM (#50436405)

Was it denominated in USD or ARS?

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Re:CoreWeave bond yield tops 16% as AI credit stress rises by andsoitis on Tuesday November 10, 2026 @01:02AM (#50436648)

$2.75 billion in U.S. dollar-denominated sovereign debt.

https://www.economist.com/finance-and-economics/2017/06/24/i...

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Re:CoreWeave bond yield tops 16% as AI credit stress rises by jurgenburgen on Tuesday November 10, 2026 @03:56AM (#50437728)

I’m old enough to remember that they defaulted on those bonds three years later.

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Re:CoreWeave bond yield tops 16% as AI credit stress rises by igleria on Tuesday November 10, 2026 @06:17AM (#50438729)

NEVER buy an Argentinian bond at full price. always wait until we are burning stuff up. don't believe any argentinian president, ever.

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