Oracle Credit Fear Gauge Hits Highest Since 2009 on AI Bubble Fears
The Oracle Corp. headquarters campus in Redwood City, California.
Photographer: David Paul Morris/BloombergA credit-risk gauge on Oracle Corp. debt closed at the highest level since the financial crisis after a flood of bond sales from tech giants amplified concerns that a bubble is forming in the artificial-intelligence industry.
The cost of protecting Oracle’s debt against default reached its highest since March 2009 on Tuesday, based on end-of-the-day credit derivative prices in New York, rising to about 1.28 percentage point a year, according to ICE Data Services. The price rose nearly 0.03 percentage point from the day before, and has more than tripled from as low as 0.36 percentage point in June.