16 Nov 2025 | 5 Mins Read
Lenders and investors scramble to mitigate AI loan default risks
Flipitmoney
Banks and money managers are trading derivatives to protect against potential failures of tech companies with heavy artificial intelligence investments. Trading volume for credit default swaps on Oracle and Meta Platforms has increased to $4.2 billion and $4 billion, respectively. Approximately $1.5 trillion in bonds are expected to be issued by investment-grade companies in the next few years.