Investors increase hedging risks in AI-related CDS trading

Investors are scrambling to purchase credit default swaps (CDS) to hedge against a potential collapse of the AI boom. Morgan Stanley data shows that in September, the weekly trading volume of CDS linked to bonds of companies like Oracle, SpaceX, and Alphabet exceeded $9 billion, compared to less than $2 billion in July. This year, the trading volume of U.S. corporate CDS has already surpassed last year's total.