Meta’s Five-Year CDS Spread Hits Record as AI Spending Raises Debt Concerns
Photo: TokenPost
Meta Platforms’ five-year credit default swap (CDS) spread hit an intraday record Oct. 22, as plans for higher AI infrastructure spending sharpened questions about how technology companies will finance the buildout. The spread rose as much as 8.9 basis points to about 119.3 basis points per year, the highest intraday level since the contracts began trading. Meta’s bonds also performed worse than U.S. Treasuries. Meta put its future spending commitments under leases and contracts at about $825 billion, with many tied to AI computing capacity and infrastructure. In July, the company put its future commitments at nearly $700 billion.
Source: TokenPost
