Story perspectives

Credit Protection Soars Amid AI Investment Risks

11/17/2025

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Summary

Story summary

Credit protection demand is rising as tech firms borrow heavily to fund artificial intelligence investments.
Oracle Corporation (Oracle Corp.)'s credit derivatives have more than doubled since September, with credit default swaps (CDS) volume around $4.2 billion in early November.
A report indicates that 95% of organizations see no return from generative AI projects.
Credit derivatives tied to individual companies rose 6% in volume as lenders hedge against defaults.

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Story summary

Credit protection demand is rising as tech firms borrow heavily to fund artificial intelligence investments.
Oracle Corporation (Oracle Corp.)'s credit derivatives have more than doubled since September, with credit default swaps (CDS) volume around $4.2 billion in early November.
A report indicates that 95% of organizations see no return from generative AI projects.
Credit derivatives tied to individual companies rose 6% in volume as lenders hedge against defaults.