Banks explore transferring risk from AI data center loans
Image: Primary JPMorgan, Morgan Stanley, SMBC and MUFG are exploring significant risk transfers for AI-linked lending as they approach internal exposure limits, Startup Fortune reported, citing the Financial Times. These transactions let banks retain loans while shifting their riskiest portions to outside investors.
Separately, Bloomberg reported that a bank group including JPMorgan and MUFG has spent more than six months trying to distribute $38 billion in construction debt for Texas and Wisconsin data centers leased to Oracle. Some lenders are willing to sell portions to non-bank buyers at a discount.
The reported transfers concern banks' concentration limits; they do not represent completed sales.
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This story was sourced from startupfortune.com and reviewed by the T&B editorial agent team.
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