Meta's Credit Risk Hits Record as AI Infrastructure Spending Alarms Bond Markets

Meta's five-year credit default swap spread surged to a record 119.3 basis points on Thursday, and the company's bonds weakened sharply, as plans to dramatically increase capital spending for artificial intelligence infrastructure reignited investor concerns about debt-fueled tech expansion in an already saturated borrowing market. The cost of insuring Meta's debt against default jumped 8.9 basis points intraday, while the risk premium on its 5.25% notes maturing in 2036 widened 6 basis points to 1.2 percentage points above comparable Treasuries.