Oracle 5-Year Credit Default Swaps Rise to 191 Basis Points
The source says Oracle’s 5-year credit default swaps (insurance-like contracts against default) have reached their highest level since the 2008 Financial Crisis, reflecting increased bets against the company’s credit.
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Terms & Concepts
- Credit default swaps: Derivatives that act like insurance on debt, allowing investors to hedge or speculate on a borrower’s default risk.
- Basis points: A unit equal to one-hundredth of a percentage point, commonly used to describe changes in yields, spreads, or credit pricing.