SoftBank shares drop 11% as its credit risk hits a four-year high and CoreWeave bond yields top 16%

SoftBank Group led losses in Asian bonds as the rout in artificial-intelligence stocks spread to credit markets¹. Its shares dropped 11% as its credit risk hit a four-year high amid AI concerns^3,4.

Founder Masayoshi Son lost $3.9 billion as the shares tumbled, leading $18 billion in losses among Asia’s tech billionaires during the global AI selloff⁹. SoftBank’s shares have fallen by almost 50 per cent in two months, and the selloff has cost the company £12bn¹⁰.

In the US, the bond yield of neocloud operator CoreWeave topped 16% as AI credit stress rose^2,5. CoreWeave’s credit default swaps spiked above 1289 basis points on Thursday, higher than their October peak⁵.

Why it matters to investors

The cost of debt tied to the AI build-out is rising. The AI “credit card” is getting costlier as CoreWeave’s yields climb². The stress is spreading wider through the market⁵.

Banks are also reducing exposure. ING is reportedly seeking buyers for data center loans⁶, looking to sell $500m of them at once, including loans tied to a Stargate site⁷. The buyers could range from private credit investors through asset managers to insurers, who would buy the assets for their expected higher returns⁶. The sale further spooked investors in a wobbly market⁷.

SoftBank faces twin tests, with credit markets fretting and the outlook from its chip designer Arm failing to inspire⁸. Son has made what he calls “Physical AI” a central bet for the group⁸.

What to watch

Some analysts see room for recovery among AI cloud providers. CoreWeave shares rose 3% as a rival’s results lifted the neocloud sector, in what one analysis called “not a fundamental reset”¹². The same analysis asked whether Nvidia’s outlook on 17 November would slip if neocloud deliveries slip, and noted that the interest bill comes first¹².

Others are more cautious. CoreWeave was rated Hold because of high debt and low margins despite strong revenue growth¹¹. The Trump administration has vowed to support data centers², even as CoreWeave’s swap spreads moved past their October peak⁵.

Investors will watch SoftBank’s credit spreads, CoreWeave’s bond yields and the reception for bank loan sales such as ING’s as gauges of whether the stress stays contained^4,5,7.