Investors are buying credit-default swaps tied to AI-focused corporates to hedge
portfolios against a potential unwind of the AI boom, driving sharply higher
volumes. Corporates have boosted borrowing to fund trillions of dollars of AI
infrastructure, increasing demand for CDS protection, which pay out if
referenced issuers default. Morgan Stanley research shows CDS linked to bonds
from Oracle, SpaceX, Alphabet, Amazon, Meta, Broadcom and NVIDIA averaged
>$9bn/week in September versus