According to Bloomberg, data from ICE Data Services shows that the cost of Oracle's five-year credit default swaps (CDS) rose by 0.079 percentage points (7.9 basis points) in intraday trading to 198.58 basis points. If this closes at that level, it will set a new all-time high, surpassing the previous peak in December 2008.

As major tech giants embark on large-scale borrowing to build AI infrastructure, Oracle has become a key barometer for Wall Street in measuring AI-related credit risk. John Lloyd, Global Multi-Sector Credit Head at Janus Henderson Investors, stated that Oracle CDS has become the proxy indicator for AI risk in the credit market. Its widening spreads reflect the market’s assessment of the leverage required for AI infrastructure funding demand, rather than a bearish stance on Oracle’s own fundamentals. To support investment in the AI sector, Oracle has significantly increased its debt scale. Its approximately $120 billion in bonds have been included in the Bloomberg US Investment Grade Corporate Bond Index, making it the largest non-bank issuer in the index.