[Concerns Over AI Financing Rise, SoftBank Credit Risk Hits Nearly Four-Year High] BlockBeats News, October 20, according to Bloomberg, as market concerns over AI-related financing and potential large-scale acquisitions intensify, SoftBank Group's 5-year credit default swap (CDS) spread rose to 432 basis points on Tuesday, the highest since early November 2022, expanding by more than 30 basis points compared to last week when it breached 400 basis points. The financial strain on CoreWeave has brought attention to the debt issues behind the AI investment boom. Amid rising financing costs, SoftBank is also considering acquiring Allied Universal, with its funding needs and leverage levels under scrutiny. Bloomberg Industry Research credit analyst Sharon Chen predicts that SoftBank will experience at least $6 billion in cash outflows in the fiscal year ending March 2027, and further AI investments will increase financing demands. She stated that SoftBank would need to raise new funds for potential acquisitions, with its loan-to-value ratio possibly approaching its self-imposed 25% cap. SoftBank's stock performance has been weak recently, having fallen about 50% from its June peak. [Original Link]