Nvidia default risk nears record high as board weighs CEO’s fate
The cost of insuring Nvidia’s debt against default climbed close to a recent high as its board considered CEO Jensen Huang’s future. The board is reportedly evaluating interim and permanent successors following allegations about Huang’s personal c...
By Bloomberg |
The cost of protecting Nvidia Corp.’s debt against default rose Thursday as the chip company’s board met to decide the fate of Chief Executive Officer Jensen Huang.
The price of protecting Nvidia’s debt against default for five years increased as much as 3.25 basis points to 1.445 percentage points a year, according to ICE Data Services, just short of the intraday high set Nov. 3.
While costs have more than tripled since mid-year, the swaps are only about half the level for lower-rated hyperscalers SpaceX and Oracle Corp.
Nvidia’s board has been working with an outside firm to identify potential replacements for Huang following reports of multiple extramarital affairs, including one with a woman who is reportedly suspected of spying for China, a person familiar with the situation said. The board is weighing the idea of naming a temporary chief while searching for a permanent one.
