RT The Kobeissi Letter (@KobeissiLetter)Investors are hedging against corporate defaults at a record pace:Trading volume in the world's largest credit default swap (CDS) indexes surged +69% in Q1 2026, to $4.5 trillion, the highest on record.This exceeds the previous record set in Q2 2025 during the tariff turmoil by +36%.This is also +350% higher than the ~$1.0 trillion traded in Q4 2019, before the pandemic.The surge has been driven by the Iran War and growing concerns that AI could reshape entire industr ...

Group 1 - OpenAI's $300 billion deal with Oracle is facing delays, with some data centers now expected to be operational by 2028 instead of 2027 due to labor and material shortages [1] - Oracle's recent 10Q filing indicates an increase in data center leases, suggesting a higher likelihood of Oracle entering the debt market sooner than previously anticipated, potentially as early as next year [2] - Oracle's shares have declined by 5% after a 10% drop the previous day, with a noted correlation between the stock price and the rising credit default swap rates [3]

Credit Risk - Oracle's 5-year Credit Default Swap (CDS) surged to 81 basis points, the highest in 2 years [1] - Credit traders are increasing protection against Oracle defaulting on its debt at the fastest pace since 2023 [1] Financial Sustainability - The report questions Oracle's ability to sustain its aggressive AI buildout [1]

A roughly $2 billion leveraged loan for First Brands tumbled after a news report about Apollo taking on a credit default swap position that will pay off if the auto parts and equipment manufacturer fails to pay its debt https://t.co/PHDa6Nhj2C ...