JPMorgan says most banks have less than $500 million exposure to CoreWeave

JPMorgan estimated on Tuesday that most banks worldwide have limited risk exposure to Coreweave (CRWV.US). The share price and bonds of the NVIDIA-backed cloud computing company saw a sharp decline last week due to investor concerns over its debt financing issues. JPMorgan noted that although major U.S. investment banks and Japan's Mitsubishi UFJ Financial Group might have potential CoreWeave exposure ranging between 1 billion and 3 billion USD, most European and Asian participants have exposure of less than 500 million USD. Most of this exposure is through delayed draw term loans, which are largely held via special purpose entities, and funds will be released as the project reaches specific milestones. From the perspective of the lending banks, JPMorgan believes banks have managed their risk exposure to CoreWeave well and have robust collateral in place.