Why Are Investors Buying Credit Default Swaps to Hedge AI-Related Debt?

October 25, 2026

What is driving increased demand for credit default swaps?Investors are increasing their use of credit default swaps (CDS) to hedge exposure to debt issued by companies involved in artificial intelligence infrastructure, according to market data and financial industry research. The increase comes as technology companies raise substantial amounts of capital to finance data centres, semiconductors and other computing infrastructure.