Credit Default Swaps

Oracle’s AI‑driven expansion has lifted its stock over 30% YTD, though October saw a 23% drop. New co‑CEOs Clay Magouyrk and Mike Sicilia face pressure as the company prepares Q2 earnings and funds a $300 billion, five‑year OpenAI compute deal. Financing will require $20‑30 billion of debt annually, adding to $111.6 billion of existing obligations after an $18 billion bond sale. Credit investors warn of heightened risk, with CDS spreads at multi‑year highs. Analysts await proof of revenue growth—15% to $16.2 billion—and a stronger cash‑flow backbone to support the debt load.