What is happening with Oracle? Oracle's, ORCL, 5-year credit default swaps (CDS) hit 118 basis points last week, the highest since the 2022 bear market. The cost has tripled since July, which now means protection costs ~118,000 for every 10 million of principal. By comparison, the June 2022 peak reached ~127 basis points, which had tripled over the prior 6 months. As a result, trading volume on the company’s CDS reached ~5 billion over the 7 weeks ended November 14th, marking a YoY 25x jump. This comes as Oracle’s CDSs became a preferred way to hedge or bet against the AI boom due to its heavy AI spending, complex deal exposure, and weaker credit ratings than its peers. In a similar trend, CoreWeave, CRWV, an AI infrastructure provider, saw its 5-year CDS spike to 699 basis points, the highest since trading began this year. "AI Bubble" callers are in full swing.(The Kobeissi Letter)