Huoxing Finance reports that on July 24, Oracle Corporation’s 5-year credit default swap (CDS) rose to a record high of approximately 203 basis points, meaning the company would pay about $203,000 annually to insure $10 million in debt against default. Oracle’s CDS has more than quadrupled since mid-2025, surpassing the peak levels seen during the 2008 financial crisis. Meanwhile, the company’s borrowing costs are also rising: the spread on its 6.7% bonds maturing in 2056 widened by +8 basis points on Monday to 263 basis points, while the spread on its 5.7% bonds maturing in 2036 widened by +9 basis points to 205 basis points. On July 9, S&P Global Ratings downgraded Oracle to BBB-, just one notch above junk status, citing rapid growth in AI-related spending. Oracle’s credit risk has reached crisis levels.
Oracle's 5-Year CDS Hits Record High, Sparking Investor Concern
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Summary
On July 24, 2026, Oracle’s 5-year CDS reached a record high of 203 basis points, according to on-chain news. This level implies an annual cost of $203,000 for $10 million in debt protection. The metric has quadrupled since mid-2025, exceeding its 2008 peak. Oracle’s borrowing costs are also increasing, with its 2056-maturing bonds widening to 263 basis points at a 6.7% coupon. On July 9, S&P downgraded Oracle to BBB- citing rapid AI spending. Crypto news platforms are closely monitoring these developments.
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