SpaceX, Broadcom, and Oracle have collectively sought over $150 billion in financing in less than a week. This, combined with Broadcom-Anthropic's previously roadshowed $60 billion debt, has led to a lending frenzy in the AI ecosystem that has saturated the public bond market, forcing more transactions into private credit and off-balance-sheet special purpose vehicles (SPVs).

This wave of financing is reshaping risk pricing across the entire credit market. Oracle's five-year CDS surged to a record closing high of 261 basis points on Thursday, while SpaceX's five-year CDS broke above 197 basis points, setting a new record. Even NVIDIA, the world's most valuable company by market capitalization, saw its five-year default probability priced by the market at over 7%.

Goldman Sachs credit strategist Rich Privorotsky characterized this situation as a "capital scramble" and warned that "the crowding out effect could be enormous." AI borrowers are willing to take on funds at high single-digit interest rates, putting upward pressure on government bond yields, with the 10-year US Treasury yield returning to 5.31% and the 30-year hovering near 5.70%.