Nvidia's five-year credit default swaps surge, AI infrastructure cycle financing raises bond market concerns

July 29th News, according to Caixin, Nvidia's five-year credit default swap (CDS) spread rose by 14 basis points to 0.82%, marking the largest intraday increase since November 2025, indicating a significant rise in investor concerns about Nvidia's credit risk. Market analysis suggests that the direct trigger for this credit market anomaly is Nvidia's potential support for OpenAI's data center expansion using its own credit. The market's true concern lies in Nvidia's multiple roles. The intertwining of interests across the AI industry chain may lead to "circular financing," making risks more complex: Nvidia invests in, guarantees, or leases data centers, and projects obtain funding to then purchase Nvidia chips; the growth in chip sales, in turn, increases Nvidia's profits and financing capabilities, allowing it to continue supporting downstream customers.