By Caleb Mutua
Publication Date: 2025-12-03 16:27:00
(Bloomberg) – A credit risk measure for Oracle Corp.’s debt. closed at its highest level since the financial crisis after a flurry of bond sales by tech giants increased fears that a bubble is forming in the artificial intelligence industry.
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The cost of protecting Oracle’s debt from defaults reached its highest level since March 2009 on Tuesday, based on end-of-the-day prices for credit derivatives in New York, rising to about 1.28 percentage points a year, according to ICE Data Services. The price rose nearly 0.03 percentage points from the previous day and has more than tripled from a low of just 0.36 percentage points in June.
The indicator reduced part of the price gains on Wednesday and increased by up to 0.024 percentage points.
Oracle has effectively sold tens of billions of dollars’ worth of bonds in recent months, through the sale of notes in its own name and indirectly through projects it supports. These debt sales, coupled with the fact that Oracle…
