Five Tech Firms' Debt Protection Costs Hit Highest Level Since 2021

Debt protection costs for Amazon, Alphabet, Microsoft, Meta and Oracle climbed to their highest level since 2021 over the past month, while investors sought ways to limit losses tied to AI. Oracle’s credit default swap spread widened by more than 1 percentage point. Credit default swaps, or CDS, are contracts used to protect against losses from a debt default. The rise in protection costs covered all five large technology companies, extending beyond a single issuer. The move follows earlier increases in protection costs for AI-linked corporate debt .

Source: TokenPost