JPMorgan Sees Limited Bank Risk After CoreWeave Debt Selloff

JPMorgan estimates that most European and Asian lenders have less than $500 million in potential exposure to CoreWeave, Inc. after last week’s selloff in the cloud company’s shares and bonds. JPMorgan estimates potential CoreWeave exposure of $1 billion to $3 billion for each large U.S. investment bank and for Japan’s Mitsubishi UFJ Financial Group, Inc. It puts most European and Asian lenders below $500 million. The figures describe potential exposure, not realized losses. Most of the bank exposure comes through delayed-draw term loans, which release funds as projects reach milestones. The loans are mainly held through special purpose entities.

Source: TokenPost