Big Tech Credit Default Swaps Spike to Records on AI Debt Fears
Cost of insuring against default for Oracle, Broadcom, Meta, Nvidia, Amazon, and Alphabet has jumped sharply this year as their combined bond issuance approaches $200 billion.
The cost of insuring against default for major technology companies is surging as concerns mount over their aggressive debt issuance to fund artificial intelligence investments.
Oracle’s 5-year credit default swap (CDS) has climbed 70 basis points year-to-date to a record ~215bp, the largest jump among peers. Broadcom’s rose 48bp, Meta’s 39bp (to 95bp, its highest since trading began), Nvidia’s 32bp (~82bp), with Amazon and Alphabet each up about 30bp.
This comes as the group has issued roughly $200 billion in corporate bonds so far in 2026, nearly double the full-year 2025 total. Credit markets are increasingly pricing in higher risk that the heavy spending on the AI race may strain balance sheets.
Source: The Kobeissi Letter