Single‐name credit default swaps on Alphabet jumped to $895 million outstanding after netting opposite trades. The number of dealers quoting Alphabet CDS rose to six at end‐2025, up from one in July, highlighting a sharp increase in hedging activity for the tech giant.

Alphabet is joining other hyperscalers in borrowing heavily to fund more than $3 trillion of projected AI spending, driving demand for credit derivatives that protect investors from rising leverage. Some providers now offer baskets of hyperscaler CDS to mirror growing cash bond offerings and broaden exposure beyond traditional indexes.

Alphabet raised $32 billion in a three‐currency debt sale this week, drawing orders several times the size of the issue within 24 hours. The company even sold 100‐year bonds, underscoring investor appetite for long‐term financing despite concerns over rapid obsolescence in the industry.