CoreWeave just paid $640 million in interest in a single quarter, up 139% in a year.
A lot of this debt gets rated safe (investment grade), even though CoreWeave itself is rated junk. Loans are backed by rental contracts with companies like Microsoft. The rating is really about Microsoft's ability to pay, not CoreWeave's. A shaky borrower and a reliable customer and suddenly risky debt look safe.
Take something risky, wrap it with something solid, and call the whole thing "safe." Although I believe chips are worse collateral than houses. A house holds value for decades. A GPU can lose most of its value in three years when the next one comes out. Wouldn't this basically be the same move that blew up in 2008 with mortgages?