Wall Street banks trade more credit derivatives amid big tech’s massive AI debt surge
Wall Street banks are experiencing a surge in credit derivatives trading due to significant borrowing by big tech firms for AI infrastructure. Credit default swap volumes tied to US tech companies have increased by 90% since September 2025, with hyperscalers accumulating $121 billion in new debt. Analysts project an additional $1.5 trillion in tech sector borrowing through 2028, raising concerns about the sustainability of this debt load.
- ▪Credit default swap volumes tied to US technology companies surged 90% since early September 2025.
- ▪Hyperscalers collectively borrowed $121 billion in 2025, more than quadrupling the average borrowing pace of the past five years.
- ▪Oracle's five-year CDS spread widened significantly, indicating increased market concerns about debt sustainability.
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Wall Street banks trade more credit derivatives amid big tech’s massive AI debt surge CDS volumes tied to US tech firms jumped 90% since September as hyperscalers borrowed $121 billion in 2025 to fund AI infrastructure. Share Add us on Google by Editorial Team May. 23, 2026 window.sevioads = window.sevioads || []; var sevioads_preferences = []; sevioads_preferences[0] = {}; sevioads_preferences[0].zone = "01f21ccf-2092-46b1-9ac7-8c44cc782e0f"; sevioads_preferences[0].adType = "native"; sevioads_preferences[0].inventoryId = "c5700508-581b-472c-8fdd-a931cdbfc8e1"; sevioads_preferences[0].accountId = "1e47efc1-ec2d-4fca-a8b9-354e249e5095"; sevioads.push(sevioads_preferences); Big Tech’s appetite for debt has gotten so large that Wall Street had to build entirely new markets just to manage…
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