Nvidia's Debt-Default Insurance Costs Climb as Jensen Huang's Fate Remains Undecided

TechFlow reported on November 12 that as Nvidia's board met Thursday to decide CEO Jensen Huang's future, the company's debt-default insurance costs rose. ICE Data Services data showed that Nvidia's five-year credit default swap (CDS) cost briefly climbed 3.25 basis points to 1.445% annually, approaching the intraday high set on November 3.

Although this cost has more than doubled since mid-year, it remains only about half of that for lower-rated hyperscale cloud companies SpaceX and Oracle. According to a person familiar with the matter, after Jensen Huang was reported to have had multiple extramarital affairs, Nvidia's board has been working with an external firm to identify potential CEO successors. The board is considering appointing an interim CEO while searching for a permanent successor. (Jin10)

Source: TechFlow