Morgan Stanley Explores Data Center Risk Transfer

Morgan Stanley, a key investor in AI, is considering selling off data center loan risk through a significant risk transfer (SRT). This move aims to reduce exposure to large AI projects, as data centers are vital for AI power. Banks like Morgan Stanley, Citigroup, JPMorgan Chase, and Goldman Sachs are exploring SRTs to manage credit risk and free up capital. The cost of insuring against default for AI-focused companies has risen, indicating increased caution among lenders. Global SRT deals are expected to grow by 11% annually over the next two years, reflecting a trend among banks to manage exposure in fast-growing sectors like AI.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.