CDS on AI-linked companies are at record highs this month as investors race to hedge an AI boom unwind. Mohamed El-Erian flagged FT reporting that protection costs are climbing with the borrowing bing

What happened: Investors are racing to buy credit default swaps to protect their portfolios in case the AI boom unravels, per the FT. Key numbers: The cost of buying CDS on many AI-linked companies hit record highs this month. Why it matters: The FT frames the move as a sign of increasing investor unease over the borrowing binge.

Investors are racing to buy credit default swaps to protect their portfolios in case the AI boom unravels, per the FT.

The FT frames the move as a sign of increasing investor unease over the borrowing binge.