Investors Surge into Tech Credit Default Swaps Amid AI Debt Boom Worries

Investors are accelerating purchases of credit default swaps to hedge against growing debt risks across the artificial intelligence sector. Average weekly CDS trading volume tied to major tech firms, including Amazon, Alphabet, Meta, Oracle, Broadcom, and Nvidia, climbed past $9 billion in September 2026, up from under $2 billion in July. The rush to hedge follows an estimated $466 billion in AI-linked debt issuance this year, compared with $101 billion over the same period in 2025. Surging protection demand has pushed five-year CDS spreads to record highs, including Meta at 108 basis points and Oracle at 322 basis points.