JPMorgan: CoreWeave Debt Selloff Poses Limited Risk to Global Banks

October 20 - JPMorgan estimated on Tuesday that most global banks have limited exposure to CoreWeave (CRWV.O). This comes after the Nvidia-backed cloud computing company's shares and bonds fell sharply last week amid investor concerns over its debt financing. JPMorgan said that while the potential exposure of major U.S. investment banks and Japan's Mitsubishi UFJ Financial Group to CoreWeave could be between $1 billion and $3 billion, most European and Asian participants have exposure of less than $500 million. Much of this is through delayed-draw term loans, which are primarily held through special purpose vehicles, with funds released as projects reach milestones. From the perspective of financing banks, JPMorgan believes banks' exposure to CoreWeave is well managed and very well collateralized.