CoreWeave can overcome the market's skepticism about its debt.
That isn't the consensus view — some Coreweave debt remains deeply distressed with yields above 15%. But Coreweave should power through this tough stretch, according to John Lloyd, global head of multi-sector and corporate credit at Janus Henderson.
"It's a little bit of overreacting," Lloyd tells CNBC, referring to the sell-off in Coreweave bonds, which have tanked along with its equity.
Lloyd owns Coreweave 9.75% bonds due in 2031 in the firm's Multi-Sector Income Fund. The yield to maturity on the debt is now 15.97%, a more than 70% jump since its issuance in April. Bond prices and yields move in opposite directions.
"Bond prices are lower, spreads are wider, yields are wider, and I don't see a huge fundamental change in the ecosystem right now that would warrant that, other than their higher cost of financing, which I think they can get creative with," Lloyd added.