BREAKING
Oracle Default-Swap Costs Hit Multi-Year High
0
bps
CDS spread Monday
0
bps
prior Friday
0
B
long-term debt
Why Credit Markets Are Nervous
1
AI data center buildout
↓
2
Funded by borrowing
↓
3
Long payback horizon
↓
4
Credit risk rises
Oracle vs Bigger Cloud Rivals
Oracle
leverage
●
Debt past $100B
●
Seeking ~$38B more
●
Concentrated customers
Microsoft, Meta, Amazon
cash flow
●
Funded from cash
●
Lower relative debt
●
Diversified demand
0
%
drop from peak
0
B
planned financing low
0
B
planned financing high
Can Backlog Outrun the Debt
AI NEWS BLITZ
Oracle's cost to insure its debt against default just spiked to a near two-decade high.