Intel credit default swaps hit a record 123.5 bps as AI spending jitters spread

The cost of insuring Intel's debt posted its biggest one-day jump since October 2022, alongside record spreads for Broadcom and SpaceX Intel’s five-year credit default swap spread widened to a record 123.5 basis points on October 30, 2026. It was the biggest single-day move for the contract since October 2022. The chipmaker had plenty of company. Credit traders spent the day repricing risk across the tech sector, and the bill for protecting against a default went up for several of the industry’s biggest names at once. What moved, and by how much A credit default swap works much like an insurance policy on a company’s bonds. The buyer pays a regular premium, and if the borrower defaults, the seller covers the loss. That premium is quoted in basis points, where one basis point equals one hundredth of a percentage point. A spread of 123.5 bps means protection costs 1.235% of the insured amount per year. When the number climbs, the market believes default risk has risen, or at least that it deserves more compensation for carrying that risk. Intel’s spread was sitting at 104 bps as of October 28. Before the spike, the contract had traded in a range of 90 to 104 bps. Two trading days lat...