Wells Fargo's Luis Alvarado said investors are demanding more risk compensation as CoreWeave's bond yields neared 15%, while Paul Meeks of Freedom Capital Markets argued the concern is overdone: "It's definitely not a deteriorating situation," CNBC reported. CoreWeave CEO Mike Intrator called the moves irrational and said the backlog more than supports its debt obligations.
The disagreement shows the same facts read two ways: a company with more than $51 billion of debt and obligations and a B+ rating, or one whose backlog covers its obligations. Readers should weigh both.
Source: CNBC