THE ORACLE DEFAULT RISK INDEX (CDS) HAS SOARED TO ITS HISTORICAL PEAK

On 19 July, Oracle ' s credit risk index rose to its historical peak, reflecting deep market concerns about the sustainability of the investment boom in AI. According to ICE Data Services, the price differential for Oracle credit default swap (CDS) rose by about 10 basis points to 198.23 on Friday, a record record record, surpassing the previous peak of 198.18 on 27 March. This means that the cost to investors of protecting Oracle debt from default has risen to unprecedented levels. Oracle owns approximately $117 billion in bonds in the Bloomberg high-rated corporate bond index, making it the largest company outside the financial sector in the index. At the same time, the release of the new AI model Kimi K3 raised concerns about the competitiveness of existing AI products and the overall pressure on the technology unit. The above-mentioned overlap has further deepened the market ' s doubts about Oracle ' s aggressive capital-expenditure strategy and the return on AI ' s investment prospects。