Business · Markets · 3 hrs ago
Credit-default swap trading tied to major US tech firms surges
Trading in credit-default swaps tied to seven major US technology companies surged as investors worried about borrowing to build artificial-intelligence infrastructure.
The weekly average topped $9 billion in September, compared with less than $2 billion in July.
Credit-default swaps are contracts that help investors protect themselves against a borrower failing to repay its debt.
The companies include Oracle, SpaceX, Alphabet, Amazon, Meta, Broadcom and Nvidia.
Investors are concerned that returns from AI investment remain uncertain even as companies take on large amounts of debt to fund infrastructure.
The rise suggests credit concerns are reaching major technology firms, not just companies already known for carrying heavy debt.
Credit-default swap trading tied to seven major companies surged as investors sought protection against credit risk.
Morgan Stanley Research data showed average weekly trading topped $9 billion in September.
That was more than four times the level recorded in July, when weekly trading was below $2 billion.
The article linked the increase to borrowing for AI infrastructure investment and uncertainty over whether that investment will be profitable.
- Who
- Investors trading credit-default swaps tied to Oracle, SpaceX, Alphabet, Amazon, Meta, Broadcom and Nvidia.
- What
- Weekly average trading in the companies’ bond-related credit-default swaps exceeded $9 billion in September.
- When
- Trading rose between July and September; the article was published on October 20, 2026, UTC.
- Where
- The United States; the companies named are major US technology firms.
- Why
- Large borrowing for AI infrastructure investment and uncertainty about its profitability raised concern about credit risk.
This story does not have two clearly opposing sides.
Weekly trading in credit-default swaps tied to the seven companies was below $2 billion.
Average weekly trading in those swaps topped $9 billion.
- Companies covered
- Oracle, SpaceX, Alphabet, Amazon, Meta, Broadcom and Nvidia
- September trading
- More than $9 billion in weekly average volume
- July trading
- Less than $2 billion in weekly volume
- Reported increase
- More than fourfold in two months