'Canary in the coalmine' for a major Wall Street collapse, analysts warn

Key points

• The cost of insuring against big technology firms defaulting on their debt has reached record highs. Data centre operator CoreWeave has been hit hardest, with its five-year credit default swap spread soaring 16 per cent to a record 1.14 per cent this week before easing to 1.03 per cent.
• The company has taken on more than $US50 billion in debt. Analysts say rising inflation and interest rates are increasing borrowing costs, and investors are growing anxious.
• Market strategist Henry Jennings called CoreWeave the canary in the coalmine for excessive big tech debt on Wall Street.