JPMorgan estimated that most global banks have limited exposure to CoreWeave (CRWV) after the Nvidia-backed cloud company’s stock and bonds fell on debt-financing concerns, according to a BlockBeats flash.
Exposure estimates
JPMorgan put potential exposure at U.S. large investment banks and Japan’s MUFG at $1 billion to $3 billion, while most European and Asian participants had exposure below $500 million. Most of the exposure was through delayed-draw term loans held mainly by special-purpose entities, with funds released when projects hit milestones.
Collateral remains central
JPMorgan said banks were managing their CoreWeave exposure appropriately and had ample collateral. The figures are the bank’s assessment and do not constitute an independent exposure audit.
Source: BlockBeats flash, citing JPMorgan.