By Seema Mody
Publication Date: 2026-02-02 22:14:00
oracle 5-year credit default swaps fell 17% compared to the software provider plan The raising of $50 billion in debt and equity boosted investor confidence that the company can avoid a credit downgrade as it finances its artificial intelligence expansion.
“Equity financing significantly inhibits the downside risks of credit,” Barclays credit analyst Andrew Keches wrote in a note to clients on Monday. Keches upgraded Oracle’s debt to overweight and said CDSs are likely to fall further.
For investors, credit default swaps are a type of insurance in which the buyer pays for protection in the event that the borrower is unable to repay their debts.
Oracle’s CDS rose to the heights late last year amid concerns that the company’s massive data center commitments would hurt its balance sheet and put debt investors at risk. Oracle raised $18 billion in September through the sale of a jumbo bond, one of the largest bond offerings ever in the technology industry.
The 5-year swaps were seen by the market as a way for investors to…