#bonds

Oracle filed with the SEC on Monday, November 2, to sell $10 billion in common stock and $10 billion in senior notes to help pay for its AI buildout. The plan had been outlined at its investor day the week before, but the shares still fell 8.8%. Oracle has said this $20 billion is all the new capital-market funding it plans for its fiscal 2027 to 2030 investment cycle, leaning instead on vendor financing, customer-provided hardware and prepayments.

On Tuesday, Meta sought to raise $20 billion to $25 billion in a bond sale, about two-thirds in dollars and one-third in euros, according to people familiar with the matter cited by CNBC. The sale came days after S&P Global Ratings revised Meta's AA- outlook to negative, citing its heavy capital spending and negative free cash flow. Meta has said it plans to raise $95 billion in total, including $35 billion in public stock offerings. Its shares rose 2.7% on Tuesday after a losing October.

Credit markets stayed nervous about AI borrowers this week even as stocks bounced. On October 19, the yield on CoreWeave's 9.625% bond due 2032 was 14.9%, and the spread on its five-year credit default swaps was about 1,082 basis points; CNBC notes a spread above 1,000 is generally a sign of distress. Oracle's five-year CDS spread widened to 315 basis points.

Economist David Rosenberg called Oracle the "canary in the coal mine," noting that Oracle, Alphabet, Amazon and Meta have issued more than $228 billion of bonds this year. A Janus Henderson credit head said the moves look overdone.

On October 22, Nvidia CEO Jensen Huang told CNBC that demand for neoclouds is "off the charts" but "there's a scarcity of capital," adding, "That's going to get solved."

The yield on France's benchmark 10-year bond briefly rose above 5% on October 21, the first time since 2002, before settling just under it, CNBC reports.

The government is trying to pass its 2027 budget through a divided parliament, with Prime Minister Sébastien Lecornu targeting 54 billion euros in spending cuts, while violent protests demanding more spending on education and cost-of-living relief spread over the weekend. France's deficit was 5.1% of GDP at the end of last year; the EU, which has France under its excessive deficit procedure, wants it closer to 3%.

Finance minister Roland Lescure told RTL the government would use Article 49.3 of the constitution, which lets it adopt a bill without a vote, if lawmakers do not agree. Yahoo Finance noted on October 22 that France's 10-year yield was above the U.S. 10-year for the first time since 2013.