Wall Street traders are increasingly hedging exposure to Big Tech credit as hedging activity tied to AI-era borrowing surges, pushing outstanding credit default swap (CDS) volume to record levels.
In a Wednesday post on X, The Kobeissi Letter stated that the total net notional value of outstanding credit default swaps on major tech firms jumped to a record $12.5 billion. It is up $1 billion so far in the second quarter of 2026.
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The total value of debt being insured against default on these companies has risen 500% since the second quarter of 2025.
Big Tech With Highest CDS Exposure
