By Caleb Mutua
Publication Date: 2025-11-15 17:56:00
Demand for credit protection has driven up the cost of credit derivatives on Oracle Corp. bonds. more than doubled since September.
(Bloomberg) – As tech companies prepare to borrow hundreds of billions of dollars to spur investments in artificial intelligence, lenders and investors are increasingly trying to protect themselves from everything going wrong.
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Banks and asset managers are increasingly trading derivatives that offer payouts if individual technology companies, so-called hyperscalers, default on their debts. Demand for credit protection has driven up the cost of credit derivatives on Oracle Corp. bonds. more than doubled since September. Trading volume for credit default swaps tied to the firm jumped to about $4.2 billion in the six weeks ended Nov. 7, according to Jigar Patel, credit strategist at Barclays Plc. That’s up from less than $200 million in the same period last year.
“We are seeing renewed interest from customers in…