SoftBank Group’s credit default swaps (CDS) climbed to a near three-year high. The five-year CDS reached approximately 383.2 basis points. This pricing represents the highest cost to insure against a SoftBank default since 2023.
Market concern centers on SoftBank’s substantial financial ties to OpenAI. OpenAI is currently negotiating a funding round that could value the startup at over $1.2 trillion.
Widening CDS spreads likely increase SoftBank’s future borrowing costs. Higher interest expenses may restrict the firm's ability to fund future large-scale technology investments.