Banks seek to offload risk to avoid ‘choking’ on data centre debt
Groups including JPMorgan Chase, Morgan Stanley and SMBC are trying to find ways to distribute portions of data centre-related deals to a broader range of investors, according to people familiar with the matter.
Lenders are exploring private deals to sell stakes in the debt as well as so-called risk transfers to reduce exposure to big borrowers and free up capacity for more lending.
Didn’t we do this with home mortgages a couple of decades ago? And look how well THAT turned out!