---
title: "Spread: what it means · The AI Compute Race · DRYBURGH"
source: https://dryburgh.com/vol1/glossary/spread
description: "Spread: The extra interest a borrower pays over a benchmark rate, such as Treasuries or SOFR, quoted in basis points. Chapter 10."
---

# Spread

What does “Spread” mean?

SpreadThe extra interest a borrower pays over a benchmark rate, such as Treasuries or SOFR, quoted in basis points. *Chapter 10.*

From *The AI Compute Race*. [Read the book](https://dryburgh.com/vol1#buy)

## Where the book uses it

- [Chapter 10 — The Lender’s Decision](https://dryburgh.com/vol1/notes/chapter-10)Who is lending the money and who bears the loss: the bonds, leases and guarantees behind the largest campuses, and how the paper reaches ordinary retirement accounts.

## Where the record uses it

- Scorecard indicator [Hyperscaler corporate bond issuance (five investment-grade issuers)](https://dryburgh.com/vol1/scorecard#row-23)
- Scorecard indicator [CoreWeave 2026 borrowing spread ladder](https://dryburgh.com/vol1/scorecard#row-26)
- Dated test [Chapter 14, the movement sideways, toward commodity, due 31 August 2029](https://dryburgh.com/vol1/tests#2029-10)

## Sources that use it

- Oracle Corporation, final pricing term sheet (free writing prospectus, Rule 433), 2 February 2026 (5.700% Notes due 2036: $5,000,000,000, price 99.782%, benchmark Treasury 4.000% due 15 November 2035 at 4.279%, “Spread to Benchmark Treasury: +145 basis points”, yield to maturity 5.729%; one of eight tranches — floating 2029, 4.550% 2029, 4.950% 2031, 5.350% 2033, 5.700% 2036, 6.550% 2046, 6.700% 2056, 6.850% 2066 — in a $25,000,000,000 offering priced with a concurrent $5 billion of 6.50% mandatory convertible preferred; the 2036 notes’ “Expected Ratings” from Moody’s, S&P and Fitch: Baa2 negative, BBB negative and BBB stable). [In the Sources](https://dryburgh.com/vol1/sources/filing#oracle-fwp-feb26)
- Sonali Wilson, “the $1.3 trillion manager’s lead investment director for private credit” at Wellington Management, in James Crombie, “Wellington Is Passing on Data-Center Debt Deals on Property Value Concerns,” Bloomberg, 23 July 2026 (her figures as the paper gives them from her interview on Bloomberg Intelligence’s Credit Edge podcast, the podcast itself not opened by this book: “Spreads on loans to fund data-center construction have fallen to about two percentage points over benchmark rates, half what they were four years ago”; “The deals also have more leverage, in some cases as high as 90% loan to value, up from about 60% earlier this decade”; of the asset class, “Today, I’ll say — not every situation — but by and large it’s a pass”; in the paper’s words she still “flags relative value opportunities in loans against the bonds of high-quality firms like Microsoft Corp. and Meta Platforms Inc.”; read whole on a subscription on 18 October 2026). [In the Sources](https://dryburgh.com/vol1/sources/press#bloomberg-wellington-pass-jul26)

## Related terms

- [Benchmark](https://dryburgh.com/vol1/glossary/benchmark)
- [SOFR](https://dryburgh.com/vol1/glossary/sofr)
- [10-K, 10-Q](https://dryburgh.com/vol1/glossary/10-k-10-q)
- [Backstop](https://dryburgh.com/vol1/glossary/backstop)
- [Basis point](https://dryburgh.com/vol1/glossary/basis-point)
- [Beignet](https://dryburgh.com/vol1/glossary/beignet)
- [Bridge loan](https://dryburgh.com/vol1/glossary/bridge-loan)
- [Convertible](https://dryburgh.com/vol1/glossary/convertible)
- [Coupon](https://dryburgh.com/vol1/glossary/coupon)
- [Covenant](https://dryburgh.com/vol1/glossary/covenant)
- [DDTL](https://dryburgh.com/vol1/glossary/ddtl)
- [Debt-service coverage](https://dryburgh.com/vol1/glossary/debt-service-coverage)

From the glossary of The AI Compute Race.

- [Campuses](https://dryburgh.com/vol1/ledger)
- [Tests](https://dryburgh.com/vol1/tests)
- [Scorecard](https://dryburgh.com/vol1/scorecard)
- [Data](https://dryburgh.com/vol1/data/releases)
- [Chapter by chapter](https://dryburgh.com/vol1/companion)
- [The record at a glance](https://dryburgh.com/vol1/observatory)
- [The machine](https://dryburgh.com/vol1/machine)
- [One campus, four futures](https://dryburgh.com/vol1/hyperion)
- [Glossary](https://dryburgh.com/vol1/glossary)
- [People](https://dryburgh.com/vol1/people)
- [Sources](https://dryburgh.com/vol1/sources)
- [Notes](https://dryburgh.com/vol1/notes)
- [Where the book was wrong](https://dryburgh.com/vol1/corrections)
- [Where its sources were wrong](https://dryburgh.com/corrections?book=vol1)
- [The Paper](https://dryburgh.com/vol1/paper)
- [Consent](https://dryburgh.com/vol1/consent)
- [Who builds and pays](https://dryburgh.com/vol1/parties)

*The AI Compute Race: Five Races, One Machine* is a book by Lee S. Dryburgh, the first volume of THE COMPUTE ECONOMY, published by Dryburgh, an imprint of Contestra OÜ, Tallinn, Estonia; its record closes on 8 November 2026.

[About the book](https://dryburgh.com/vol1)[Tell me when it is out](https://dryburgh.com/vol1#notify)