AI Debt Concerns Grip Market… And Bank Of America’s Rough Day 10/14/26

Widening credit spreads on CoreWeave and Oracle debt signal bond investors are starting to doubt AI hyperscalers' long-term revenue stories.

• CoreWeave bonds hit distress: Unsecured debt due 2032 yielded over 15%; stock fell 15% as Oracle dropped 9%, with TeraWulf, Iron Hut 8 and Nebius down double digits.
• Credit spreads blow out: Oracle's CDS widened 25bps to 288, per David Rosenberg higher than summer 2008; Oracle spreads moved from ~60bps a year ago to ~250bps now.

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