ORACLE'S credit default swaps have surged to their highest levels since 2023
Oracle. Think Larry Ellison
Credit Default Swaps (CDS) For AI Giant, Oracle, Skyrocket as Oracle Debt Soars
Oracle’s $ORCL credit default swaps have surged to their highest levels since 2023 as the company takes on significant debt to fund its AI infrastructure build-out. Oracle’s Debt-to-Equity is now about 520%.
The cost to insure Oracle’s debt has nearly doubled since June according to ICE Data Services. Morgan Stanley expects net adjusted debt to rise from about $100 billion today to close to $290 billion by fiscal 2028 and recommends hedging with five-year CDS.
The chart below shows the cost of insuring Oracle’s CDS:
When Credit Default Swap premiums begin to rise, it is because the market has concerns about the company defaulting.
The Bank of England is warning of devastating fallout as AI Debt Bubble is now being pushed to the limit with record Oracle, and Junk Bond Deals
This past Friday night, October 31, the U.S. Federal Reserve had to pump $29.4 Billion into banks through Overnight REPO because someone (or a group of someones) became very tight on cash. This massive surge of emergency-type funding came without any warning - and was more than the highest peak of such funding during the Dot Com bubble implosion. (Story Here)
It is starting to look like something wicked this way comes in banking, stocks, and finance.
Just to remind you
https://www.theregister.com/2024/09/16/oracle_ai_mass_surveillance_cloud/
The administration of U.S. President Donald Trump is working on a plan to save TikTok that involves tapping software company Oracle, opens new tab and a group of outside investors to effectively take control of the app’s operations, two people with knowledge of the discussions told Reuters.
It is also important to remember thatv"AI" is in this country also a bubble...a ponzi...to fleece the little people through their 401k's. The oligarchs got rid of pension plans for a reason.
Could AI be the catalyst for yet another orchestrated market crash, to justify looting the treasury, with more huge government bailouts?
Which bubble will "they" pop first, the AI Ponzi scheme or the Crypto pyramid con? Either way, it will be the public that gets fleeced, not the billionaires.