Credit default swap premiums on tech and AI-linked borrowers have reached historic levels in October 2026. CoreWeave, the data center operator, shows the most extreme case with its five-year CDS exceeding 1,100 basis points, implying roughly a 63% five-year default risk, up from 30% a year earlier, while the company carries nearly $50 billion in debt. Oracle has seen its CDS reach 288-300 basis points after widening by 31 basis points in just one week, with debt load around $160 billion and its credit rating downgraded by S&P to BBB-, the lowest investment-grade tier. Companies in the sector, including Oracle, Broadcom and SpaceX, have issued nearly $500 billion in AI-related debt in 2026, and higher-than-expected US inflation risks worsening the situation by increasing the carrying cost of this massive debt.
Source: Read the original article
