Stocks
Nvidia Soars as US Credit Swap Demand Surges Amid Debt Concerns
Nvidia's recent bond sale has created a surge in demand for credit default swaps, making Nvidia one of the top traded US credit swaps. Investors are seeking to hedge their exposure to the firm's debt after the company issued $25 billion in bonds in June.
According to Nicholas Godec, head of fixed income tradables and commodities at S&P Dow Jones Indices, market participants have traded protection on $6.9 billion of Nvidia's debt in the past six months, a significant increase from the prior six months' notional trading volume of $640 million.