Credit risk gauges for the largest technology companies reached new highs on October 20, 2026, with investors bracing for an imminent wave of bond sales. Oracle carries an implied five-year default probability of over 20%, SpaceX approximately 16%, while CoreWeave’s credit default swaps have traded above 1,100 basis points, signaling distress. Oracle, Broadcom, and SpaceX have collectively issued nearly 500 billion dollars in new debt in 2026 to finance AI infrastructure, with combined capital expenditure anticipated to exceed 1 trillion dollars between 2025 and 2026. S&P Global has issued an alert about under-recognized AI-linked liabilities not fully reflected in current assessments, and several companies are predicted to report negative free cash flows well into 2027.
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