AI-related debt issuance for chips and data centers reached approximately $466 billion in 2026, up from $101 billion during the same period in 2025. Oracle's insurance costs more than doubled since January and were trading at 350 basis points as of Oct. 20. Market participants are utilizing these derivatives to hedge against rising corporate leverage and uncertain returns on capital expenditures within the sector.
Tuesday, October 20, 2026
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AI Credit Swap Volumes Hit Record $9.5B
AI10 hours ago
Investors are rushing to buy insurance against potential defaults among the companies financing artificial intelligence infrastructure. Weekly trading volumes of credit default swaps (CDS) tied to Alphabet, Amazon, Meta, Nvidia, Broadcom, Oracle and SpaceX rose to $9.5 billion, more than four times the volume recorded in July. Insurance costs have reached distressed levels for AI infrastructure provider CoreWeave, where 5-year spreads hit a record 1,090 basis points, while Meta and Nvidia saw spreads hit 108 and 101 basis points respectively.
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