Data center debt spreads diverge from broader securitized markets

Data center asset-backed securities are trading increasingly like debt issued by AI infrastructure companies, rather than tracking the broader securitized market, Yahoo Finance reported. Barclays researcher Elana Lipchak said data center spreads are flattening or widening while broader asset-backed security spreads compress. Hyperscaler asset-backed securities traded at 150 basis points over the 5-year Treasury earlier this month, 16 basis points wider than a year earlier. Developers use these permanent financing loans to refinance construction debt. Most deals so far back cloud data centers; refinancing of AI facilities under construction is expected to expand the market.