# SoftBank Credit Swap Spread Hits 432 Basis Points, Highest Since 2022

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/35467
Published: 2026-10-20T08:50:18.000Z
Updated: 2026-10-20T08:50:18.000Z
Section: Business

> SoftBank is weighing an Allied Universal acquisition as it funds AI investments. Credit analyst Sharon Chen expects at least $6 billion in cash outflows in the fiscal year ending March 2027.

SoftBank Group's five-year credit default swap spread rose to 432 basis points Tuesday, Oct. 20, its highest level since early November 2022, as investors reassessed the financing burden of its AI investments and a possible large acquisition.

The spread was more than 30 basis points wider than a week earlier, when it moved above 400 basis points. SoftBank is weighing a potential acquisition of Allied Universal while financing costs rise, putting its funding needs and leverage under scrutiny.

Financial pressure at CoreWeave has also brought attention to debt behind the AI investment boom. Credit analyst Sharon Chen expects SoftBank to record at least $6 billion in cash outflows in the fiscal year ending March 2027. She expects further AI investments to add to the company's funding needs.

Chen said SoftBank may need to raise new capital for a potential acquisition, pushing its loan-to-value ratio toward its self-imposed 25% ceiling. SoftBank's shares have fallen about 50% from their June peak.