Investors buy default protection to hedge AI-linked debt
Investors are increasing their use of credit default swaps (CDS) to hedge exposure to debt issued by companies tied to artificial intelligence infrastructure. Morgan Stanley reported that average weekly trading volume in CDS linked to bonds from issuers such as Oracle, Alphabet, Amazon, Meta, Broadcom and Nvidia exceeded $9 billion in September, up from less than $2 billion in July. AI-linked debt issuance reached about $466 billion so far in 2026, compared with $101 billion in the same period of 2025.
In 50 seconds
- Weekly CDS volume linked to bonds from Oracle, SpaceX, Alphabet, Amazon, Meta, Broadcom and Nvidia exceeded $9 billion in September, up from less than $2 billion in July.
- AI-linked debt issuance reached about $466 billion so far in 2026, compared with $101 billion in the same period of 2025, according to Morgan Stanley.
- Five-year CDS spreads for Meta (108 basis points) and Nvidia (101 basis points) hit record highs; Oracle rose from 144 to 322 basis points since the start of 2026.
Read the full story at Revista ADVFN
IASummary generated by artificial intelligence from a story by Revista ADVFN. It may contain errors: the original source prevails.
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