SoftBank’s bankruptcy odds climb to 33% as financing costs surge

SoftBank’s implied probability of bankruptcy has climbed to 33% as surging financing costs pressure the Japanese conglomerate’s heavily leveraged investment model. The rising default risk reflects broader strain on high-leverage strategies amid volatile markets and expensive debt. The shift matters because SoftBank’s balance sheet underpins a wide portfolio of technology and crypto-adjacent bets, making its funding costs a bellwether for risk appetite across the sector. Traders will watch the company’s credit spreads and debt-servicing costs for signs of further deterioration.