Oracle's 5-Year CDS Hits Record High, Raising Investor Concerns

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Investor sentiment has shifted as Oracle’s 5-year CDS rose to 203 basis points on July 24, a record high—equating to an annual cost of $203,000 to insure $10 million in debt against default. Since mid-2025, the CDS has more than quadrupled, surpassing its 2008 peak. Oracle’s borrowing costs have also increased, with its 6.7% 2056 bond spread widening to 263 basis points and its 5.7% 2036 bond spread reaching 205 basis points. S&P downgraded Oracle to BBB- on July 9, citing rising AI-related expenses. Altcoins may attract increased attention amid evolving market dynamics.

ChainThink reports that on July 24, according to X platform, Oracle Corporation's 5-year credit default swap (CDS) rose to approximately 203 basis points, hitting a record high.

At this level, Oracle's annual cost to purchase credit protection on $10 million of debt is approximately $203,000. Since mid-2025, Oracle's CDS has more than quadrupled and surpassed its peak during the 2008 financial crisis.

Its borrowing costs rose in tandem, with the spread on the 6.7% bond maturing in 2056 widening by 8 basis points to 263 basis points on Monday, and the spread on the 5.7% bond maturing in 2036 widening by 9 basis points to 205 basis points.

S&P Global Ratings downgraded Oracle's rating to BBB- on July 9, just one level above junk status, citing rapid growth in its AI-related spending.

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