Nvidia is starting to insure the residual-value problem Michael Burry identified

CoreWeave’s July term loan cleared at 10.44 percent with maintenance covenants. Weeks later Nvidia’s infrastructure guarantees grew sharply.

Related reading: the residual value put Nvidia hasn’t priced, the depreciation clock CoreWeave’s bulls aren’t running, and CoreWeave’s customers are becoming its competitors.

Start with what the marginal lender did. CoreWeave marketed a US$2.6 billion first-lien delayed-draw term loan on 16 July at SOFR plus 425 to 450 with a 99 original issue discount. …