The Zhitong Finance App learned that while Wall Street is preparing to provide huge loans to giants in the field of artificial intelligence (AI), it is also trying to protect itself from any bubble that its financing may fuel. The urgency for banks to reduce their risk exposure is evident throughout the credit market. The cost of using derivatives to protect Oracle (ORCL.US) debt from default has risen to its highest level since the 2008 global financial crisis. Morgan Stanley has considered using significant risk transfers (a form of insurance against loan losses) to spread some of its risks associated with tech company borrowers.

The Zhitong Finance App learned that while Wall Street is preparing to provide huge loans to giants in the field of artificial intelligence (AI), it is also trying to protect itself from any bubble that its financing may fuel. The urgency for banks to reduce their risk exposure is evident throughout the credit market. The cost of using derivatives to protect Oracle (ORCL.US) debt from default has risen to its highest level since the 2008 global financial crisis. Morgan Stanley has considered using significant risk transfers (a form of insurance against loan losses) to spread some of its risks associated with tech company borrowers.