Nvidia Corp.'s (NASDAQ:NVDA) credit default swaps posted their biggest one-day jump on record Monday, a sign the debt market may be losing faith in the AI trade faster than the stock market is.
The five-year swaps, which price the cost of insuring Nvidia's debt against default, jumped roughly 14 basis points to around 82 basis points, according to ICE Data Services.
The contracts only began actively trading in November.
The move shows "the credit market noticing something the equity market hasn't fully priced," Pepperstone research strategist Dilin Wu told Bloomberg.
The stock fell 4.99% to $196.51 Monday, shedding roughly $250 billion in market value, once again ceding the title of world's most valuable company to Apple Inc.
