Credit Derivatives on Meta Start Trading After Big Bond Sales

Derivatives allowing investors to bet against Meta Platforms Inc.’s bonds began actively trading for the first time this week, as money managers and banks look to hedge their exposure to an industry that has been piling on debt to pay for artificial intelligence investments.

Credit derivatives tied to Meta’s debt traded on Thursday, when the social media giant raised $30 billion in the biggest US corporate investment-grade bonds offering of the year, according to people with knowledge of the transactions, who asked not to be identified as the details are private. That transaction comes after a $27 billion private bond sale earlier this month to help fund a data center in Louisiana that Meta will use and partly own.