According to The Kobeissi Letter, weekly trading volume in credit default swaps tied to major tech companies reached approximately $8 billion in December 2025, the highest on record, with volumes more than doubling since August 2025. According to The Kobeissi Letter, AI-driven corporate borrowing is pushing investors to seek greater downside protection in tech credit, underscoring elevated hedging demand in the sector.

According to @KobeissiLetter, Oracle's (ORCL) credit default swap spread has surged above 150 bps, indicating heightened market pricing of the company’s credit risk. source: @KobeissiLetter on X, Dec 17, 2025 According to @KobeissiLetter, investors are selling ORCL shares due to concerns about the company's ability to deliver on recently announced data center buildouts. source: @KobeissiLetter on X, Dec 17, 2025 According to @KobeissiLetter, traders should monitor whether ORCL CDS stays above 150 bps and whether equity weakness persists as signals of continued de-risking pressure. source: @KobeissiLetter on X, Dec 17, 2025

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 @LexSokolin, Boaz Weinstein’s Saba Capital has been selling CDS protection on Oracle, Microsoft, Meta, Amazon, and Alphabet, positioning long credit and collecting insurance premiums. Source: @LexSokolin on X, Dec 6, 2025. According to @LexSokolin, the fund views current credit spreads as inflated by AI anxiety and aims to monetize that perceived mispricing via premium income. Source: @LexSokolin on X, Dec 6, 2025. According to @LexSokolin, this expresses AI skepticism without shorting NVIDIA stock, offering a non-directional AI risk stance relative to NVDA’s equity. Source: @LexSokolin on X, Dec 6, 2025. According to @LexSokolin, no direct cryptocurrency exposure or impact was cited in this positioning. Source: @LexSokolin on X, Dec 6, 2025.

According to Lex Sokolin, credit default swaps on Oracle’s debt jumped 44% in a month to 87 basis points, making the company a preferred proxy to bet against the AI boom (source: Lex Sokolin on X). According to Lex Sokolin, Oracle’s market capitalization has fallen by more than 300 billion since September, reinforcing the bearish credit signal and positioning ORCL as a hedge for AI downside in cross-asset positioning (source: Lex Sokolin on X).

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).