'Saba Capital Management Has Sold Credit Derivatives To Lenders Seeking Protection From Tech Exposure; Saba Sold Credit Default Swaps On Oracle, Microsoft, Meta, Amazon, And Alphabet, Says Source' - Reuters Exclusive

Author: Benzinga Newsdesk | November 17, 2025 11:28am

• Saba sells credit derivatives to hedge against tech stock risks, source says
• Sells Oracle, Microsoft, Meta, Amazon, Google CDSs
• AI stocks have sold off in recent weeks

LONDON, Nov 17 (Reuters) - Boaz Weinstein's Saba Capital Management has sold credit derivatives in recent months to lenders seeking protection on big tech names like Oracle and Microsoft due to concerns over a debt-financed AI investment frenzy, a source told Reuters.

Banks have sought to shield their exposure to potential losses by buying credit default swaps (CDS) from the U.S. hedge fund manager, known for his winning bet against the JPMorgan Chase JPM.N trader dubbed the "London Whale", the person said.

While the credit insurance rises in value in tandem with the perceived risk of a company's default, current prices indicate those risks are still low compared to other sectors.

Saba sold banks CDSs on Oracle ORCL.N, Microsoft MSFT.O, Meta META.O, Amazon AMZN.O and Google parent Alphabet GOOGL.O, said the source, who had direct knowledge of the deals.

Some large asset managers, including a private credit fund, were also keen to buy the product, the source said.

Microsoft declined to comment. Meta, Google, Amazon and Oracle did not immediately respond to requests for comment.

Posted In: AMZN GOOG GOOGL META MSFT ORCL