According to Lex Sokolin, the spike in Oracle credit default swaps signals a regime shift in how AI infrastructure is financed and built (source: Lex Sokolin). According to Lex Sokolin, credit markets are flagging rising risk (source: Lex Sokolin). According to Lex Sokolin, AI agents will require native financial rails rather than hyperscaler IOUs (source: Lex Sokolin).

According to Lex Sokolin, traders are buying credit default swap protection on Oracle, and the cost of that default insurance jumped rapidly, indicating a sharp widening of Oracle’s credit spreads (source: Lex Sokolin). According to Lex Sokolin, credit spreads are acting as a real-time seismograph of AI risk, making spread moves a direct gauge for AI-related risk across markets (source: Lex Sokolin). According to Lex Sokolin, this places Oracle’s CDS as a tradable risk signal that cross-asset participants, including crypto traders, can monitor when AI risk is in focus (source: Lex Sokolin).

According to @lisaabramowicz1, the cost of protecting Oracle’s debt via credit default swaps (CDS) reached its highest level since March 2009 yesterday and has more than tripled since June (source: @lisaabramowicz1 on X, Dec 3, 2025). CDS prices represent the cost of insuring against issuer default, so elevated CDS levels signal higher perceived credit risk (source: ISDA, Credit Default Swaps overview). Bitcoin (BTC) and Ethereum (ETH) have shown materially higher co-movement with U.S. equities since 2020, indicating that macro and credit risk shocks can transmit into crypto risk sentiment (source: IMF, Crypto Prices Move More in Sync With Stocks, 2022). Given these linkages, traders may monitor BTC and ETH for volatility if tech credit stress persists and use Oracle’s CDS trajectory as a barometer of risk appetite (source: IMF 2022; @lisaabramowicz1 on X, Dec 3, 2025).

According to The Kobeissi Letter, Oracle’s (ORCL) 5-year credit default swaps rose to 118 basis points last week, the highest since the 2022 bear market, tripling since July and implying roughly $118,000 in protection cost per $10 million of principal (source: The Kobeissi Letter). According to The Kobeissi Letter, this sharp CDS widening reflects a material increase in perceived credit risk and hedging costs that traders monitor alongside ORCL equity and tech credit to assess potential spillover into broader risk assets, including BTC and ETH (source: The Kobeissi Letter).