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Open original source ↗Wow. Coreweave down 23% in 5 days. 47% in 6mo. Credit default swaps now suggest a 64% chance of default. Yikes $CRWV
How bad is it really? Not good.
➡️ This stock performance makes it harder for them to issue stock.
➡️ Their bonds dumping ~20% makes it harder for them to issue new debt
😇 So both fundraise methods poopie.
Some of this might be "trade momentum" on the CDSs themselves.
➡️ stock down
➡️ cds up
➡️ cds traders buy more cds's
➡️ stock panics more
➡️ repeat
But it still causes a problem!
best time to buy these is usually when their short-term liquidity actually goes positive... it's well negative right now. idk, no guarantees. watch what they do next.
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