Wall Street Braces for AI Debt Reckoning as Default Insurance Trading Hits Record Levels

Credit default swap trading on AI-linked corporate bonds has surged to $9 billion per week, signaling mounting investor anxiety over whether technology companies can service the record debt they are accumulating for artificial intelligence infrastructure. The spike in default insurance trading—up from $2 billion weekly in July—reflects growing skepticism about when, if ever, massive investments in data centers and AI computing will generate sufficient revenue to justify their mounting cost.