Big Tech Credit Risk Surges as CDS Spreads Hit Multi-Year Highs

Credit default swap (CDS) spreads on Oracle (ORCL), Amazon (AMZN), Google (GOOGL), and Microsoft (MSFT) have risen to approximately 75 basis points, nearing the highest levels in at least seven years. Excluding Oracle, the average spread for the same group is about 49 basis points—the highest since 2018. Both metrics have more than doubled since the start of 2025 and are now significantly above their 2022 bear market peaks.

The surge in CDS spreads comes as Big Tech companies have accelerated debt issuance to finance AI infrastructure. So far in 2026, companies including AMZN, GOOGL, NVDA, META, ORCL, and SpaceX have issued a record $182 billion in investment-grade bonds, a 1,300% increase year-over-year. This accounts for roughly 15% of total US corporate bond issuance year-to-date.

The trend highlights how the AI revolution is reshaping credit markets, with investors demanding greater protection against rising credit risk from the sector.