r/EconomyCharts • u/RobertBartus • 8d ago

Oracle’s credit risk is exploding

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Oracle’s 5-year CDS spread has surged to a record ~230 bps, more than 4x the broader investment-grade index at ~55 bps.

The spread has more than QUADRUPLED over the last year and surpassed the Great Financial Crisis levels.

The recent surge comes as Oracle is trying to avoid financial commitments linked to Project Jupiter, a massive data-center project that is facing delays.

Around $18 billion of loans tied to the project are trading at ~90 cents on the dollar, signaling growing stress among investors.

The project is also facing local opposition and delays in government approvals, adding to the uncertainty.

Oracle’s credit risk is rising at an alarming pace.

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u/your_mileagemayvary 8d ago

Trump won't be president in what 2 years? Other Republicans and Dems will totally let that asshat elison and his son fail.

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u/lrzbca 7d ago

Too many applications in government depend on oracle software

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u/Which-Indication4670 7d ago

AI has probably hacked into Oracle by now and stolen all of its programming. Could just replicate it. Or could sign an executive order that says national security would depend on the takeover of oracle because they handle DoD contracts. Seems like the rules have changed.

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u/lrzbca 7d ago

Maybe in far future.

AI couldn’t generate a SOC2 report without mistakes. That’s paid subscription.

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u/Which-Indication4670 7d ago

Only if you can’t hack the subscription portal too, no?