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Big Tech 5-year CDS spreads near 7-year highs at about 75 basis points

Big Tech 5-year CDS spreads near 7-year highs at about 75 basis points

Rising credit default swap pricing for Oracle, Amazon, Google and Microsoft points to stronger investor demand for protection against corporate credit risk.

Fact Check
The claim faithfully reflects the originating July 16, 2026 Kobeissi Letter post, which states 5-year CDS spreads on Oracle, Amazon, Google and Microsoft are up to ~75 bps, near a 7-year high. The Global Markets Investor Substack independently reports the same ~75 bps figure near the highest since 2018, and RankiaPro corroborates the broader trend of widening Big Tech CDS amid record AI-driven bond issuance. The precise 'near 7-year high' phrasing derives from a single primary financial-commentary source rather than an official CDS-data provider (e.g., ICE, S&P), which limits confidence to medium, but the direction and approximate magnitude are corroborated by multiple sources.
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Summary

Investors are seeking more protection against Big Tech credit risk, with 5-year credit default swap spreads on Oracle, Amazon, Google and Microsoft rising to about 75 basis points, near the highest level in at least seven years. Higher CDS spreads typically indicate that market participants are paying more to insure against the risk that a borrower could fail to meet its debt obligations, making the move a notable signal of changing sentiment toward large technology issuers.

Terms & Concepts
  • credit default swap: A contract that insures against a borrower defaulting on debt.
  • CDS spreads: The premium paid for default protection, usually measured in basis points.
  • basis points: One-hundredths of a percentage point, used to measure yield or spread changes.