On October 22, credit risk indicators for Meta Platforms (META.O) rose to historic highs on Thursday, causing bond prices to decline. This followed Meta's plan to increase capital expenditures, sparking market concerns that the tech giant may issue more debt for artificial intelligence construction, exacerbating market saturation. Data from ICE Data Services showed that investor concerns escalated, with Meta's five-year credit default swap (CDS) prices rising by as much as 8.9 basis points to around 119.3 basis points per year, marking the highest intraday level since the product's listing. Meta stated that it will invest approximately $825 billion in leases and contracts in the future, most of which are related to artificial intelligence computing power and infrastructure. In July, Meta reported that its total future spending commitments had reached nearly $700 billion. Additionally, the performance of Meta's bonds relative to U.S. Treasuries has also weakened.
