AI-related credit and computing power downside hedging demand rises, with CDS costs for the five major cloud providers hitting a new high since 2021
The Wall Street Journal reported that investors and data center operators are increasing downside hedges on AI-related stocks, bonds, and computing power prices. The cost of CDS protection for Amazon, Alphabet, Microsoft, Meta, and Oracle has risen over the past 1 month to its highest level since 2021.