AI-driven borrowing is pushing investors to seek more downside protection: The weekly trading volume in credit default swaps (CDS) tied to major tech companies rose to ~$8 billion in December 2025, the highest on record. Volumes have more than DOUBLED since August. By comparison, volumes were steady, at ~$3 billion, for the first half of 2025. This comes as tech companies raised a combined $88 billion in debt last fall to fund AI infrastructure projects, led by Meta, META, Amazon, AMZN, Alphabet, GOOGL, and Oracle ORCL. Meanwhile, investment-grade companies are projected to raise a massive $1.5 trillion by 2030 to build out AI infrastructure. Investors are quietly hedging against AI debt risks.(The Kobeissi Letter)