CoreWeave debt selloff poses limited risk to global banks, J.P. Morgan says
CRWV•J.P. Morgan estimated most global banks have limited exposure to CoreWeave, with large U.S. investment banks and MUFG potentially exposed to $1 billion to $3 billion. CoreWeave has about $50 billion in debt and $24 billion in committed delayed draw term loans.
1. Bank exposure estimates
J.P. Morgan estimated that large U.S. investment banks and Japan’s MUFG could each have exposure of about $1 billion to $3 billion to CoreWeave, while most European and Asian banks have less than $500 million. The brokerage said much of the lending is through delayed draw term loans held in special-purpose vehicles, with capital released as projects meet milestones.
2. Debt and cash flow risks
CoreWeave has about $24 billion in committed delayed draw term loans, including $15 billion drawn and $9 billion undrawn, and about $50 billion in debt. J.P. Morgan said the key risk for banks is a mismatch between upfront AI infrastructure spending and revenue received over time, and expects CoreWeave’s free cash flow to remain negative until 2030.
