CDs News & Analysis
2 articles
Market Mood
Hyperscaler CDS Risk Increases to 60 Basis Points, Apollo Reports
Apollo Global Management warned that corporate debt linked to major cloud computing firms is becoming riskier. As of October 2025, the gap between hyperscaler credit default swaps (CDS) and bank CDS widened to approximately 60 basis points from around 0. This rise is not due to increased dealer hedging but reflects worsening hyperscaler credit fundamentals, including rising leverage and negative free cash flow. This trend could affect financial conditions for cloud providers, influencing their ability to manage debt in an AI-driven market.
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Fed Rate Decisions Impacting CD Rates at 4% Stalemate
Current Certificate of Deposit (CD) rates remain unchanged at 4%, with potential shifts expected following upcoming Federal Reserve (Fed) meetings. Analysts indicate that these decisions could influence interest rates, affecting the savings market significantly. Investors may be weighing options to lock in rates now or await further Fed announcements. Monitoring these developments is crucial for investors looking to optimize returns on cash holdings.
Read More: Fed Rate Decisions Impacting CD Rates at 4% Stalemate