Lates News

On Thursday, Meta Platforms' (META.O) credit risk indicator surged to a record high, and its bond prices fell in response. This followed the company's plan to increase capital expenditures, which once again raised market concerns that tech giants may issue more debt to build out artificial intelligence in an already saturated market. According to ICE Data Services, as investor worries intensified, the company's five-year credit default swaps (CDS) price rose by as much as 8.9 basis points to about 119.3 basis points per year, the highest intraday level since the swap product was launched. Meta said the company will invest about $825 billion in various leases and contracts in the future, many of which are related to AI computing power and infrastructure. In July, Meta reported that its total future spending commitments were close to $700 billion. In addition to the rise in CDS prices, the company's bonds also weakened relative to U.S. Treasuries.