CoreWeave and Oracle CDS Spreads Hit Records as AI Debt Costs Rise

Credit protection costs for AI infrastructure borrowers climbed to records Thursday, Oct. 15, with CoreWeave’s five-year CDS above 1,100 basis points and Oracle’s at 288, sharpening attention on debt-funded data-center expansion. A credit default swap (CDS) is a contract that protects against a borrower failing to meet debt obligations. The spread is the price of that protection, so a wider spread means protection costs more. The change signals higher perceived credit risk, but does not establish that a borrower will default. CoreWeave’s 2031 bond yield briefly rose above 16% before easing to around 14%.

Source: TokenPost