By Nell Mackenzie,Lucy Raitano
Publication Date: 2025-11-17 16:29:00
LONDON, Nov 17 (Reuters) – Boaz Weinstein’s Saba Capital Management has in recent months sold credit derivatives to lenders seeking protection for big technology companies such as Oracle and Microsoft because of concerns about a debt-fueled AI investment spree, a source told Reuters.
Banks have sought to protect themselves from potential losses by buying credit default swaps (CDS) from the US hedge fund manager known for its successful bet against JPMorgan Chase (JPM.N) The dealer named the “London Whale,” the person said.
Sign in Here.
While the value of credit insurance increases with the perceived risk of corporate failure, current prices suggest that these risks are still low compared to other sectors.
