AI-Linked Credit Default Swap Trading Tops $9 Billion a Week in September
Photo: TokenPost
Weekly trading in credit default swaps tied to seven AI-linked companies rose above $9 billion in September, reflecting greater demand for protection as companies borrowed to finance artificial intelligence infrastructure. The contracts averaged less than $2 billion a week in July. They reference debt issued by Oracle, SpaceX, Alphabet, Amazon, Meta, Broadcom and Nvidia. The September average was more than four times the July level. A credit default swap pays out if the borrower named in the contract defaults. Investors can use the contracts to protect against losses tied to corporate debt.
Source: TokenPost
