By Caleb Mutua
Publication Date: 2025-11-27 09:00:00
(Bloomberg) — A measure of Oracle Corp.’s risk. (ORCL) Debt hit a three-year high in November, and things will only get worse in 2026 if the database giant fails to allay investor fears of a massive artificial intelligence buying spree, according to Morgan Stanley.
A funding gap, a swelling balance sheet and obsolescence risk are just some of the threats Oracle faces, according to Lindsay Tyler and David Hamburger, credit analysts at the brokerage firm. The cost of insuring Oracle Corp.’s debt rose, according to ICE Data Services. against defaults over the next five years on Tuesday to 1.25 percentage points per year.
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The price of the five-year credit default swaps is at risk of surpassing the 2008 record as concerns about the company’s borrowing to finance its AI ambitions continue to drive heavy hedging by banks and investors, they warned in a note on Wednesday.
The CDS could break 1.5…
