⚠️Oracle's credit risk has never been higher: Oracle's 5-year credit default swaps rose ~10bps to 198.23bps on Friday, the highest closing level on record, surpassing the previous peak of ~197.8bps reached during the 2008 FINANCIAL CRISIS: This also exceeded the prior 2026 high of 198.18bps set on March 27th. The move comes after S&P Global downgraded Oracle to BBB-, just one notch above junk status, citing repeated underestimates of the amount of cash needed to fund its AI investments. Oracle's free cash flow has turned negative as the company ramps up its massive data center buildout. $ORCL also has ~$117 billion of bonds included in Bloomberg's US high-grade corporate bond index, making it the largest non-bank issuer in the benchmark. This comes as tech stocks broadly sold off on Friday after a new Chinese AI model reignited concerns that US AI leaders could lose their edge. Oracle's AI gamble is becoming one of the biggest tests of the AI boom.