Explainer-What are credit default swaps and why are they spooking AI investors?

July 29 : Shares in companies driving the AI boom have been under pressure for weeks. Now their bonds are coming under strain too, pushing up the cost of insuring debt issued by companies such as Oracle, Nvidia and Apple against default.The move reflects growing concern among investors about when the billions of dollars being poured into artificial intelligence will generate returns.Technology companies have raised billions of dollars in debt this year to fund AI investments, with firms including Nvidia tapping bond markets for the first time. But the cost of the AI build-out is so high that even blockbuster earnings have failed to reassure some investors about the durability of future returns.Demand for AI-linked credit default swaps (CDS), a form of insurance against default that gained