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BusinessNumbers checked№ 0013

Meta's Five-Year Default Insurance Price Hits a Record High, Latest at 114.5 bps

The price of this insurance has hit a record, which shows the market is more worried than ever about whether a big company can pay back its debt.

▼ META −1.2%

01What happened

Meta, ticker $META, saw its five-year CDS hit a record high. CDS stands for credit default swap. You can think of it as default insurance. The buyer pays on a regular schedule. If the borrowing company really cannot pay, the seller of the insurance has to pay out.

02Key numbers

03What it is used for

Prices like this are often used to see how the market feels about a company's credit. They do not directly show whether the company is doing well. But they do show how nervous people are.

04Investor angle

The price of default insurance on $META has hit a new high. This means some people are willing to pay more to protect against Meta defaulting. This is only a market signal. It does not mean Meta will run into trouble, and it is not a buy or sell recommendation.

05In short

Meta's five-year CDS has risen to its highest level on record. The market is more worried than before about whether Meta will pay back its debt.

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