Investors are demanding more protection against Big Tech credit risk: 5-year credit default swap (CDS) spreads on Oracle, ORCL, Amazon, AMZN, Google, GOOGL, and Microsoft, MSFT, are up to ~75 basis points, near the highest in at least 7 years. CDS spreads on the same group excluding ORCL are up to ~49 basis points, the highest since at least 2018. Both metrics have more than doubled since the start of 2025 and are now significantly above their 2022 bear market peaks. This comes as Big Tech has issued debt at an unprecedented pace to finance AI infrastructure, prompting investors to hedge against rising credit risk. AMZN, GOOGL, NVDA, META, ORCL, and SpaceX, SPCX, have issued a record $182 billion in investment-grade bonds so far in 2026, up +1,300% YoY, accounting for ~15% of total US corporate bond issuance year-to-date. The AI revolution is reshaping credit markets.(The Kobeissi Letter)