Lates News

According to Bloomberg, data from ICE Data Services showed that the five-year credit default swap (CDS) for Oracle rose by 0.079 percentage points (7.9 basis points) to 198.58 basis points during intraday trading, which would set a new historical record if it closes at that level, surpassing the previous peak in December 2008. With major tech giants borrowing heavily to build AI infrastructure, Oracle has become a key barometer on Wall Street for measuring credit risk in the AI sector. John Lloyd, global credit head at Juheng Capital, stated that Oracle's CDS is now a key indicator for AI risk in the credit market, with widening spreads reflecting market judgments on the scale of leverage needed for funding AI infrastructure, rather than bearish views on Oracle's fundamentals itself. To support investments in the AI field, Oracle has significantly increased its debt levels, with around $120 billion in bonds now included in the Bloomberg U.S. Investment Grade Corporate Bond Index, making it the largest issuer in the index after the banking industry.