Big Tech credit default swap spreads surge to 7-year highs as companies issue record $182B in bonds to fund AI infrastructure, signaling rising investor concern over debt levels.
Macro & Markets ·
Five-year credit default swap spreads on major technology companies including Oracle, Amazon, Google, and Microsoft have reached approximately 75 basis points, marking levels unseen in at least seven years as investors seek protection against rising credit risk. The same group excluding Oracle shows spreads of roughly 49 basis points, the highest since at least 2018, with both measures more than doubling since the start of 2025 and now surpassing 2022 bear market highs. Amazon, Google, Nvidia, Meta, Oracle, and SpaceX have collectively raised $182 billion in investment-grade debt during 2026 to fund artificial intelligence infrastructure expansion, representing a 1,300 percent year-over-year increase and accounting for approximately 15 percent of total U.S. corporate bond issuance to date.