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Nvidia Credit Risk Eases After CEO Clarifies $500 Billion Plan
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Nvidia Credit Risk Eases After CEO Clarifies $500 Billion Plan Bond traders dialed back measures of credit risk associated with Nvidia Corp. on Tuesday after the company said it would limit its exposure in a $500 billion plan to finance the type of artificial-intelligence investments that are driving demand for its computer chips. The yields on Nvidia’s 5.625% bonds that mature in 2056 slipped to 113 basis points above comparable Treasuries, a decline of 2 basis points. At the same time, the...
Nvidia Credit Risk Eases After CEO Clarifies $500 Billion Plan
Bond traders dialed back measures of credit risk associated with Nvidia Corp. on Tuesday after the company said it would limit its exposure in a $500 billion plan to finance the type of artificial-intelligence investments that are driving demand for its computer chips.
The yields on Nvidia’s 5.625% bonds that mature in 2056 slipped to 113 basis points above comparable Treasuries, a decline of 2 basis points. At the same time, the price of five-year credit default swaps narrowed as much as 5 basis points to 72.11 basis points a year, according to ICE Data Services.