On: CoreWeave bond yield tops 16% as AI credit stress rises

it's pretty well accepted that if you ever actually pay the credit card rate, you're doing it wrong

Indeed, that's what's crazy about CoreWeave's bond rate being so high. They're actually paying it?!

CoreWeave pays 9.625%. But someone expected them to not be able to meet that so they sold what debt they had at discount to someone who now effectively gets 16% on amount they paid for.

Still, this means that people would only be willing to loan new money to them at that 16% rate.

Unless they issued the bonds with a call option, yes.