Barclays has published a report titled “A Roadmap for AI CDS” that analyzes the growing credit default swap market tied to artificial intelligence companies and recommends buying five-year protection on Broadcom and selling Oracle’s five-year basis. The bank built a portfolio of ten companies, comprising six hyperscalers and four semiconductor firms, whose CDS spreads widened notably over six months. As of October 28, 2026, the five-year spreads for Microsoft, Alphabet and Amazon stood at 53, 80 and 81 basis points, respectively, while Tesla’s increased by 30 basis points. The AI portfolio’s spread relative to the CDX.IG index widened from 10 to 76 basis points, more than sevenfold in six months. Average weekly CDS trading volumes reached approximately $6 billion for hyperscalers and $3 billion for semiconductor firms, rising by roughly 740% and 1,900% year over year, respectively.
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