CoreWeave’s 9.75% senior notes saw yields surge past 15% as bond prices slid, dragging equity down with them. In this episode, we break down why rising borrowing costs squeeze fixed-price GPU contracts, what CoreWeave’s balance sheet reveals about its next debt raise, and how we’re adjusting our portfolio.
Timestamps0:00 Why Neocloud Investors Are Hurting Right Now1:20 The 2022 Playbook: Rising Yields vs. Growth Stocks2:20 CoreWeave’s 9.75% Senior Notes Explained3:15 Balance Sheet Check: $5.5B Cash vs. Debt4:40 The Bond See-Saw: Prices Down, Yields Up7:35 Reason #1: A Flood of AI and Government Debt8:55 Reason #2: Is the Neocloud Bubble Ending?9:50 Bondholders First, Shareholders Last11:00 The 2015 Shale Bust Parallel & Our Portfolio Moves
Links & ResourcesJoin Semi Insider: https://chipstockinvestor.com/features-and-pricingFree Demo: https://demo.chipstockinvestor.com/All Links: https://linktr.ee/chipstockinvestor
Disclaimer: Educational only, not financial advice. CSI holds positions in CoreWeave and Nebius as of publication.