Hyperscaler CDS Hit Record Wides, Led by Oracle and SPCX

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Credit default swaps (CDS) for hyperscalers have reached record wide levels, led by Oracle (

Oracle Corp.) and SpaceX. This signals heightened credit risk for these companies. The development suggests the bond market is becoming less willing to fund high-growth, negative return on investment ventures.

Oracle's five-year CDS premium climbed to 2.03 percentage points annually, the highest level since late 2008. S&P Global Ratings recently downgraded Oracle's credit rating to one notch above speculative grade, citing financial burdens from expanded AI investments. Since this news broke,

Oracle Corp. is down -0.93% and SpaceX is up +0.18% on Hyperdash.

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