Oracle's 5-year credit default swaps (CDS) surged to 198.18 basis points on Friday, the highest closing level EVER, officially surpassing the 2008 Financial Crisis peak.

The cost of insuring against Oracle's default has QUADRUPLED since mid-2025.

This comes as Oracle has become the most popular instrument for investors to hedge or bet against AI-related debt, with ~$120 billion of bonds in the Bloomberg US high-grade corporate bond index, the largest non-bank issuer.

Oracle also has the most-liquid investment-grade CDS, with average weekly trades topping $830 million.

Investors' bets against AI have never been larger.