# CoreWeave Five-Year CDS Spread Falls to 1,041.4 Basis Points By Enna Lee Canonical URL: https://www.tokenpost.com/news/investing/42120 Published: 2026-10-27T23:26:42.000Z Updated: 2026-10-27T23:26:42.000Z Section: Investing > A bankruptcy-announcement contract tied to Jan. 1, 2028, was priced at 11.5% YES, down from 12% a day earlier. CoreWeave’s five-year credit default swap (CDS) spread narrowed to 1,041.4 basis points, its lowest level in more than a week, while pricing on a bankruptcy-announcement contract also eased. A narrower spread indicated lower perceived default risk. A CDS is a contract that provides protection against a borrower’s failure to meet debt obligations; its spread is the price of that protection. The reading reflects market pricing and does not establish that CoreWeave will avoid default. The 1,041.4-basis-point reading followed an earlier rise above 1,100 basis points on Oct. 15, when [hedging costs for AI infrastructure debt reached record levels](). A prediction-market contract tied to Jan. 1, 2028, for a bankruptcy announcement by the end of 2027 carried an 11.5% YES price, down from 12% a day earlier. The price reflects market assessment of the outcome; it does not mean a bankruptcy announcement has occurred. Potential refinancing or new customer contracts could affect assessments of CoreWeave’s financial outlook. ## Links in this article - [hedging costs for AI infrastructure debt reached record levels](https://www.tokenpost.com/news/investing/33690)