Broadcom’s credit default swaps surged to a record 122 basis points following the announcement of a massive financing structure for purchasing and leasing artificial intelligence chips. The company is negotiating over 60 billion dollars in senior secured debt through special-purpose vehicles, with total borrowing capacity potentially reaching approximately 100 billion dollars. This arrangement builds on a partnership struck in June 2026 with Apollo Global Management and Blackstone, with Anthropic among the major clients involved. Credit markets are signaling concern, with bond spreads widening by 20 to 45 basis points relative to industry peers according to Bank of America analysts. Broadcom is betting on AI-chip revenue exceeding 100 billion dollars by fiscal year 2027, though the entire structure’s viability depends on sustained AI chip demand.
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