Oracle's credit-default swaps hit 2-year high at 80 basis points as $38 billion AI debt plan raises investor fears; analysts warn total debt could triple to $290 billion by 2028 amid aggressive cloud infrastructure expansion.

Oracle default fears surge as credit swaps spike to 2-year high - is AI taking its toll?

Oracle is rattling credit markets. The company’s default risk has surged as its credit-default swaps (CDS) — the cost of insuring its debt — spiked to their highest level in two years. Traders say the signal is clear: investors are growing uneasy about Oracle’s massive AI-driven borrowing spree.The number is striking. Oracle’s five-year CDS spread jumped to nearly 80 basis points, up from around 55 earlier this year. That’s the steepest climb since late 2023. It means investors now see Oracle’s ...