Credit default swaps for major AI-linked tech firms hit elevated levels in early October 2026, signaling growing bond market stress. Broadcom’s five-year CDS reached 136 basis points while Oracle hit a record 261 basis points, with its stock down 35% year-to-date. Nvidia, benefiting from a stronger balance sheet, has kept its CDS in a range of 80 to 87 basis points, well below its competitors, despite a record of 82 basis points in late July 2026. Nearly $500 billion in AI-related borrowing is expected by 2026, and Meta and Alphabet also saw their CDS hit records in July, showing that concerns have spread across the sector.
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