“OpenAI CDS... there’s no CDS. So effectively an OpenAI CDS is you and your prediction markets.”

Money Stuff: The Podcast · Jeremy Maletz

Play from 56:17
56:17

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What was described

Proposed using prediction-market contracts as a synthetic CDS to hedge OpenAI credit risk for data-center owners

Said nearby on the same subject

“We also episodically hedge what we call black swan risk. We look for, you know, the event that could cause a market crash. And the way we manage that risk is by buying these sort of asymmetric instruments, credit default swabs, various kinds of options to hedge.”
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Bill Ackman / Pershing Square
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“Hanson wrote up the academic case for prediction markets generally, invented policy prediction markets, pointed out prediction markets' potential uses in science and governance and corporate governance and pushed for early prediction markets to get started.”
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“The second way is to hedge out your dollar risk, which means that you still buy the US stocks, but that you sell some dollars to try and smooth out any risk on the currency side.”
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Rob Armstrong
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“Claude Code ... put it on GitHub... it made a Linux, Mac, and Windows version for you... It did CI/CD using Microsoft… using the GitHub CI/CD capability.”
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Martin Woodward
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