Janus Henderson Manager Holds CoreWeave Debt Despite Market Pressure

Janus Henderson portfolio manager John Lloyd is sticking with his holdings of CoreWeave debt. He views the company as a leader in the data center sector and believes the market's negative reaction to the bonds is overblown.

The company's 2031 notes are currently yielding 15.97%. This marks an increase of more than 70% since they were issued in April. The shift reflects falling bond prices and widening credit spreads across the market.

CoreWeave carries a total debt load of approximately 51.6 billion dollars. This figure includes notes and loans used to fund the expansion of its data center infrastructure. Investors remain wary of the company's ability to manage its refinancing costs.

The firm's debt-to-equity ratio jumped from 290% to 702% over the past year. Furthermore, the company projects capital expenditures of 36.4 billion dollars for this year against an estimated EBITDA of 7.5 billion dollars.

Lloyd argues that rising U.S. Treasury yields have pressured financing costs for many companies. He believes CoreWeave has options to manage its financial obligations. The manager sees no fundamental changes in the ecosystem that justify the current pessimism.