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Oracle’s Credit Risk Gauge Hits Record High as AI Spending Raises Debt Concerns

Austin, 17 July 2026 – The cost of insuring Oracle’s debt against default has climbed to a fresh record high as credit investors grow increasingly concerned about the company’s heavy borrowing, accelerating data-centre expenditure and dependence on large artificial intelligence contracts.

Oracle’s five-year credit default swap spread has risen above 198 basis points, surpassing levels recorded during the global financial crisis and signalling that bond investors are demanding substantially greater compensation for exposure to the technology group.

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Author

  • Tim Clark is a Senior Geopolitical Analyst for The Ledger Asia, specializing in the intersection of international relations and market stability. With over a decade of experience, Tim provides deep-dive insights into Indo-Pacific security, global supply chain resilience, and the strategic competition between major powers.

    Previously a consultant for leading international think tanks, he focuses on how shifting diplomatic landscapes and maritime disputes impact corporate governance and trade policy. At The Ledger Asia, Tim’s analysis equips readers with the clarity needed to navigate the complex regulatory and economic environments of Southeast Asia and beyond.

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