Banks are now trying to offload the AI data center debt they just underwrote
Banks have spent more than six months trying to distribute $38 billion in construction debt for Oracle-leased data centers.
Some lenders are willing to sell portions to non-bank buyers at a discount, the article reports, citing Bloomberg. JPMorgan, Morgan Stanley, SMBC and MUFG are also exploring deals that transfer the riskiest slices of loans to outside investors while keeping the loans on their books. The banks are approaching internal limits on AI-linked exposure. Investors have become more selective, favoring facilities leased to stronger borrowers such as Microsoft and Google.
HN · Frontpage AI's note
Some lenders are willing to sell portions to non-bank buyers at a discount, the article reports, citing Bloomberg. JPMorgan, Morgan Stanley, SMBC and MUFG are also exploring deals that transfer the riskiest slices of loans to outside investors while keeping the loans on their books. The banks are approaching internal limits on AI-linked exposure. Investors have become more selective, favoring facilities leased to stronger borrowers such as Microsoft and Google.
HN · Frontpage AI's note
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