Good morning from the Financial Times.

Today is Monday, December 15th, and this is your FT News briefing.

Gunman opened fire on a Hanukkah celebration in Australia,

and traders are getting nervous about the vast amount of borrowing

that's financing the artificial intelligence boom.

Investors aren't yet ditching their AI bonds or AI stocks, but they are starting to look for

some protection. I'm Victoria Craig, and here's the news you need to start your day.

An attack on Jewish beachgoers in Sydney, Australia Sunday is being treated as an act of terrorism.

Gunmen opened fire on an event marking the first night of Hanukkah, which drew more than a thousand attendees.

Video footage shows people fleeing as shots can be heard, more than a dozen are dead, with more hospitalized, including two police officers.

Australian Prime Minister Anthony Albanese called the attack, quote, an act of evil anti-Semitism.

The head of Australia's intelligence agency, meanwhile, said one of the shooters was known to his agency,

but not from a, quote, immediate threat perspective. He said he did not expect the country's

terror rating to change from the current level of probable.

What's old is new again in one part of the U.S. financial market. Credit default swaps played a central role in the 2008 financial crisis because they were a way to bet against the housing market. Now they've seen a dramatic resurgence, particularly for individual companies like Oracle, Meta, and Alphabet.

That means that costs are rising to protect against the risk that the AI boom turns to a bust.

Kate Dugood is the FT's U.S. Markets editor, and she joins me now to parse this out.

Hi, Kate.

Hi.

So just remind us what credit default swaps are and how they work.

Sure. So a credit default swaps are and how they work. Sure.

So a credit default swap is a financial agreement that basically acts like insurance against a

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