Credit stress in AI trade deepens as Oracle, CoreWeave CDS spreads hit record levels

What happened: Credit default swap spreads for AI-linked tech names hit record levels as investors question whether heavy AI investment can service rising debt costs. Oracle and CoreWeave saw the sharpest moves. Key numbers: Oracle 5-year CDS widened 26 bps to a record 288 bps. SoftBank rose 24 bps to 424 bps. CoreWeave spreads topped 1,000 bps. CoreWeave owes nearly $50B; its 2032 bonds trade at 77 cents. Why it matters: The widening signals deepening credit stress in the AI trade. Amazon, Alphabet, Meta, and Nvidia CDS also hit record wides but stayed well below Oracle's levels. Market: -1.7% today ($254.08), +12.2% YTD, 0.9x vol — as of 11:00 UTC Coverage: 3 outlets in 24h

Credit default swap spreads for AI-linked tech names hit record levels as investors question whether heavy AI investment can service rising debt costs. Oracle and CoreWeave saw the sharpest moves.

The widening signals deepening credit stress in the AI trade. Amazon, Alphabet, Meta, and Nvidia CDS also hit record wides but stayed well below Oracle's levels. Market: -1.7% today ($254.08), +12.2% YTD, 0.9x vol — as of 11:00 UTC