By Yahoo Finance Video
Publication Date: 2025-12-06 13:00:00
00:08 Speaker A
Wall Street is increasingly focused on a new question. How should the global AI tab actually be paid for?
00:13 Speaker A
For a while, the big hyperscalers financed the expansion with tons of cash, but the reality and expected expectations are now changing.
00:23 Speaker A
An ever-increasing portion of this bill is likely to come from new debt. and Oracle is already there.
00:29 Speaker A
It’s borrowing money to build AI data centers and the cost of that has caused debt to skyrocket.
00:35 Speaker A
This insurance is called a credit default swap, or CDS, and that’s what we’re breaking down today using stocks and conversions.
00:46 Speaker A
So let’s start by breaking down the CDS you may remember from the global financial crisis.
00:52 Speaker A
You can think of a credit default swap as a contract that protects an investor from a company defaulting on its debts.
01:00 Speaker A
The…