Oracle's credit default swaps are plummeting as financing plan boosts investor confidence

Oracle's 5-year credit default swaps tumbled 17% after the software vendor's plan to raise $50 billion in debt and equity bolstered investor confidence that the company will be able to avoid a credit downgrade as it funds its artificial intelligence buildout. "Equity financing significantly inhibits the downside for credit," Andrew Keches, a credit analyst at Barclays, wrote in a note to clients on Monday. Keches upgraded Oracle's debt to overweight and said that its CDS should compress further.Credit defau ...