By TechHQ
Publication Date: 2025-12-01 15:51:00
- Financial markets expect Oracle’s debt to become riskier.
- Lenders protect themselves with credit default swaps.
- Large-scale AI data center projects financed by loans.
A measure of Oracle debt risk hit its highest level in three years in November and the situation is forecast to deteriorate further in 2026. The database giant should look to allay investor fears surrounding its significant artificial intelligence buying spree, according to analysts at Morgan Stanley.
According to Lindsay Tyler and David Hamburger, credit analysts at Morgan Stanley, a funding gap, a growing number of red entries on the balance sheet and obsolescence risk are among the threats Oracle is negotiating. According to ICE Data Services, the cost of insuring Oracle’s debt rose to 1.25% per year over the next five years.
The price of the five-year credit default swaps is threatening to surpass a record set by the company in 2008 as concerns grow about borrowing to finance the company’s AI ambitions. There was…