Quick overview

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Oracle’s debt has been trading like junk for weeks amid worries that its investments in artificial intelligence won’t pay off for years, if at all.

Those concerns seemed to subside following the software giant’s record-breaking demand for a $25 billion bond sale on Monday.

Oracle’s announcement on Sunday that it would raise roughly $25 billion in equity in addition to debt this year, assuring investors that it wouldn’t put undue strain on its balance sheet as it finances significant investments in data centers, was the catalyst for the change.

Both the tech company’s stock and bonds saw gains for most of the session. Some investors expressed optimism that could extend to the larger credit market following the company’s fundraising.

US high-grade corporate bond sales could reach record levels this year, with Morgan Stanley strategists last year forecasting about $2.25 trillion of issuance. However, investor demand for securities is still high, partly due to the continued strength of corporate profits.

The bonds’ risk premiums are nearing multi-decade lows. More than $129 billion worth of Oracle bonds were ordered by investors, surpassing the previous record of $125 billion when Meta Platforms sold $30 billion in bonds in October. According to a statement released on Sunday, the company does not anticipate selling more debt in 2026. Oracle was predicted by some bond investors to sell between $40 billion and $60 billion worth of debt this year.