The hot trade: hedging against the AI bubble popping

MSN
2025.12.14 19:35
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Investors are increasingly hedging against a potential AI debt bust, with credit default swaps trading surging by 90% since September. Concerns are rising over tech firms like Oracle and Meta, which are heavily investing in AI infrastructure. Oracle's CDS costs are at their highest since 2009, and Meta's CDS popularity grew after a $30 billion bond issuance. Tech companies collectively raised $88 billion for AI projects this autumn, with JPMorgan predicting $1.5 trillion in debt by 2030.