AI boom turns into a debt boom: Oracle 5y CDS near record 261bps, implying 20.4% default odds
cyb3rops · x · 2026-10-10
Bloomberg reports AI-related borrowers have issued nearly $500bn of debt this year, and credit markets are getting nervous. Oracle's 5y CDS trades near a record 261bps, implying a 20.4% default probability; SpaceX is at 16.5% and even Nvidia is above 7%. The open question: how much future AI revenue is already being spent?
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