Is Oracle in trouble? Their credit default swaps (CDS) are skyrocketing! If something happens to Oracle, it could trigger major turbulence for AI tech companies! The current bond market is significantly raising Oracle's 'credit risk pricing.' From the chart, we can see that Oracle, as a high-quality U.S. publicly listed company, usually has its CDS in the 30–50 bps range, which is considered a safe zone, similar to treasury bonds. Back in 2022, Oracle's CDS once spiked to 120–140 bps due to the Fed's interest rate hikes, which led to a sell-off of tech company bonds. This time, there's no rate hike, nor is there a systemic liquidity crisis. The market is panicking purely out of concerns that excessive AI capital expenditures might lead to financial deterioration. This is something to watch out for—it’s essentially a stress test of the balance sheets in the AI sector. Fingers crossed everything goes smoothly.