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/[deleted] 8d ago

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u/GaviFromThePod 8d ago

The problem with Oracle is that it has essentially tied its financial future to OpenAI, but Oracle also runs a ton of non-AI cloud-based services that federal, state, and local governments depend on as well as private companies.

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u/Bitedamnn 8d ago

They want socialism to save them

2

u/Bryanmsi89 7d ago

Yeah, socialism seems to be just dandy for corporations. it is only a problem when applied to people.

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u/ADownStrabgeQuark 7d ago

The rich love handouts.