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Oracle's AI Debt Sparks Surge in Default Insurance

10/30/2025

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Summary

Story summary

Credit traders are buying protection against Oracle Corporation (Oracle Corp.)'s potential default as it invests in AI.
The cost to insure against default is near its highest since October 2023.
Morgan Stanley projects net adjusted debt to rise above $290 billion by 2028 and endorses five-year credit default swaps (CDS) and bonds.
Oracle is pursuing a $38 billion debt offering to fund AI data centers in Texas and Wisconsin.

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Story summary

Credit traders are buying protection against Oracle Corporation (Oracle Corp.)'s potential default as it invests in AI.
The cost to insure against default is near its highest since October 2023.
Morgan Stanley projects net adjusted debt to rise above $290 billion by 2028 and endorses five-year credit default swaps (CDS) and bonds.
Oracle is pursuing a $38 billion debt offering to fund AI data centers in Texas and Wisconsin.