ORACLE CREDIT RISK SURGES TO 18-YEAR HIGH

The cost of insuring Oracle's debt against default reached fresh peaks, reflecting growing market concerns over the company's substantial capital commitment to artificial intelligence infrastructure and development. Bond holders moved to offload positions, signaling skepticism about Oracle's AI spending strategy. The movement marks a significant shift in investor confidence, with credit markets pricing in elevated default risk. Oracle has committed billions to AI capabilities and data center expansion as competition intensifies in the sector. The market's reaction suggests investors are demanding clarity on expected returns from these expenditures. The 18-year high in credit risk protection indicates this represents one of Oracle's weakest credit perception periods in nearly two decades. Broader tech sector pressures around AI spending efficiency may be contributing to the selloff. Oracle has not yet responded to the market moves.