Wall Street is ramping up hedges against Big Tech: The total net notional value of credit default swaps (CDS) outstanding on major tech firms is up +$1.0 billion so far in Q2 2026, to a record $12.5 billion. The total value of debt being insured against default on these companies is up +500% since Q2 2025. Oracle, ORCL, leads with ~$6.5 billion, followed by Amazon, AMZN, at ~$2.0 billion, and Alphabet, GOOGL, at ~$2.0 billion. At the same time, Microsoft, MSFT, stands at ~$1.0 billion, Meta, META, at ~$800 million, and Nvidia, NVDA, at ~$200 million. Furthermore, monthly notional trading volumes of Big Tech CDS trading at Bank of America are up +900% since the start of 2025. For context, most of these CDS contracts did not trade actively until 2025. Corporate borrowing tied to AI is exploding.(The Kobeissi Letter)