Cloud service provider CoreWeave's bonds plunge into distressed territory.

According to Trace quote data, the unsecured bonds maturing in 2032 of AI cloud computing service provider CoreWeave fell to less than 80% of face value on Wednesday, drawing attention from Silicon Valley leaders such as Chamath Palihapitiya and Elon Musk. At this price, the bond's yield exceeds 15%. After Palihapitiya mentioned this figure on social media, Musk responded by saying "scary." CoreWeave's credit default swaps (CDS) once again rose to a record high.