Meta, Alphabet Join Credit-Risk Index as AI Hedging Demand Soars

Meta Platforms Inc., Alphabet Inc. and Microsoft Corp. joining an index of high-grade firms’ credit default swaps is another sign of investors increasingly hedging hyperscalers’ debt amid surging bond sales.

The trio are among those in S&P Dow Jones Indices’ CDX Investment-Grade Index effective Friday. Seen as a reading of perceived credit risk, a new version of the 125-company gauge is created every six months and allows investors to hedge against potential losses or to speculate on the creditworthiness of companies.