Walter Deemer: Credit default swaps may signal risks in AI funding boom

Walter Deemer: Credit default swaps may signal risks in AI funding boom
Credit swaps may flag AI funding risk

Walter Deemer highlights growing discussion around circular funding in the artificial intelligence sector. He warns that if there is excessive demand for funding or if deals are not transparent, credit default swaps could provide an early warning to market participants.

Deemer emphasizes that the credit market tends to have a better understanding of risks than the stock market.

Deemer has previously tracked technical signals such as the unfilled gap at 703.62 in QQQ, suggesting its outcome could indicate market trend strength here. He has also commented on historical challenges to value investors during the 1972-73 Nifty Fifty era here. His recent remarks on funding dynamics in AI come as investors continue to monitor market risk indicators.

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