Discovered “likely” reason $CRWV bonds jumped 225 bp in 2 days with stock selloff. On October 26, CoreWeave loses its “unlimited” cures agreement and can no longer sneak its own money into DDTL 3.0 if it’s not performing, without public disclosure, because it requires covenants. As of October 27, if the GPU backed loan doesn’t have sufficient cash flow directly from the CoreWeave customer for a period of 3 months, the loan has to be reported and amendments agreed to or it defaults. CoreWeave can’t use its own money to cover the shortfall. If it used the equity cover from August to October already, the loan could default on October 28 and would require immediate repayment. It’s likely, but not proven, that the lender has been selling other held bonds, knowing that the covenant will be breached for insufficient customer payments to CoreWeave. This is just a guess based on timing. If it’s true God Help the Ai trade and bond market.