AI Bubble Fears Are Creating New Credit Derivatives

By Sujita Rao, Bloomberg Markets Live reporter and strategist

Debt investors are worried that the biggest tech companies will keep borrowing until it hurts in the battle to develop the most powerful artificial intelligence. 

That fear is breathing new life into the market for credit derivatives, where banks, investors and others can protect themselves against borrowers larding on too much debt and becoming less able to pay their obligations