Derivatives linked to Nvidia are now one of the most actively traded varieties in the US credit default swap market, and investors are actively using this tool to hedge their exposure to the company's bonds. Nvidia was included in the CDX Investment Grade Index due to a surge in credit protection transactions for Nvidia bonds by market participants. Over the past six months, the nominal principal amount of credit protection traded by market participants reached US$6.9 billion. The cost of hedging Nvidia bond defaults has doubled this year after Nvidia heavily borrowed and the company announced a series of AI-related infrastructure deals.

Zhitongcaijing · 1d ago
Derivatives linked to Nvidia are now one of the most actively traded varieties in the US credit default swap market, and investors are actively using this tool to hedge their exposure to the company's bonds. Nvidia was included in the CDX Investment Grade Index due to a surge in credit protection transactions for Nvidia bonds by market participants. Over the past six months, the nominal principal amount of credit protection traded by market participants reached US$6.9 billion. The cost of hedging Nvidia bond defaults has doubled this year after Nvidia heavily borrowed and the company announced a series of AI-related infrastructure deals.