Goldman Sachs: SI Credit Spreads at Widest Level of the Year — Last Time They Were This High, Equities Fell 15%; CoreWeave Plunges 25% in a Week
Investment bank Goldman Sachs noted that SI credit spreads — and those of the hyperscalers specifically — are at the widest level of the year, CNBC TV18 reported. A credit spread is generally the difference in yields between risky debt and U.S. Treasuries, which are considered safe. Goldman Sachs warned that the last time spreads were this high, the underlying equities fell 15%.
Concerns about the health of the SI trade were the biggest reason behind last week's market fall. Shares of SI cloud company CoreWeave plunged 25% during the week after the yield tied to its debt surged to levels that generally indicate "distress." According to AIStockWire's sample of eight SI borrowers, spreads widened for all eight between October 8 and October 15, with the median issuer spread rising from 334 to about 413 basis points; CoreWeave's median spread widened 86 basis points, to 934.
CNBC TV18 also reported that Anthropic posted third-quarter revenue of $16.8 billion, up from $11.6 billion in the previous quarter, while noting investor concerns over whether the pace of growth is enough to justify the company's valuation. (GSM, via CNBC TV18 and AIStockWire)
Published by GSM · USA (original Chinese edition)
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