October 2025: CDS spread ~43 bp → relatively low credit risk.
- November 2025: CDS spread ~110 bp → more than doubled, signaling heightened investor concern.
- Implication: Investors are paying ~1.1% annually of notional to insure Oracle’s debt, reflecting caution about its aggressive AI infrastructure spending and debt load.
📌 Why This Matters
- Debt Financing: Oracle is investing heavily in AI and cloud infrastructure, which increases leverage.
- Credit Ratings: Still investment grade (BBB range), but weaker than peers like Microsoft.
- Market Sentiment: CDS widening often precedes bond yield increases or equity volatility.
Oracle may depend heavily on loan if open ai does not make AI great again
Google changes the trend of market
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