SoftBank Group Corp. is once again at the center of market attention as its credit-default swaps—financial instruments that serve as a barometer of credit risk—have surged to levels not seen since April. This sharp increase reflects a growing sense of wariness among investors who are beginning to question the sustainability of the company’s bold, debt-heavy expansion strategy. The broader backdrop of intensifying global competition in the technology sector has only amplified these concerns, as SoftBank’s ambitious appetite for growth encounters rising uncertainty across international markets.
The Japanese conglomerate, long known for its audacious investments and sweeping bets on emerging technologies, has been strategically unwinding certain holdings in order to reallocate capital toward a broad spectrum of artificial intelligence initiatives. These ventures span from massive infrastructure projects such as the Stargate data centers—developed through collaborations with OpenAI and Oracle Corp.—to the establishment of advanced robotics manufacturing facilities across the United States. Each of these endeavors reflects SoftBank’s continuing pursuit to remain at the forefront of innovation, even as its financial structure grows increasingly complex.
According to data compiled by Bloomberg, the company’s five-year credit-default swap, an indicator of how costly it is to insure its debt against default, rose substantially on Thursday, reaching approximately 302 basis points compared with around 280 basis points just the day before. This notable uptick illustrates a measurable shift in investor sentiment within a very short time frame, encapsulating the market’s collective reassessment of SoftBank’s creditworthiness. The movement underscores a reevaluation of risk tied to the conglomerate’s ongoing reliance on borrowed capital to fuel large-scale, technologically intensive ventures, and it highlights the delicate balance the firm must maintain between visionary expansion and prudent financial stewardship.
Sourse: https://www.bloomberg.com/news/articles/2025-11-27/softbank-cds-widens-rakuten-narrows-as-credit-views-diverge
