Investors are Using the Same Tool as ‘The Big Short’ Guys to Hedge Against an AI Bubble

If you remember the film “The Big Short” (or, more likely, get served 60-second clips of it regularly on YouTube Shorts), then you’ll probably remember the term “credit default swap.” It’s the tool that Michael Burry—who, notably, is currently shorting some major tech stocks—and others used to bet against the housing market. That same tool is becoming a popular hedge against the AI boom, according to a report from the Financial Times.

Purchase of these insurance policies…