Credit insurance costs for major tech companies have hit historic highs, with AI-related borrowing reaching nearly $500 billion in 2026. Broadcom’s credit default swaps surged to 136 basis points while Oracle’s approached 261 basis points, implying a default probability above 20% over five years. Tech companies’ capital expenditures are expected to exceed $1 trillion across 2025-2026, raising concerns across more than $10 trillion in US corporate credit. The bond market is warning against the gap between massive borrowing today and expected future revenues, with creditors becoming more demanding than equity investors.
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