SRTs backed by data-centre exposure are still a nascent slice of the credit-risk transfer market, where banks hedge their credit exposure, manage capital ratios and free up balance-sheet capacity for more lending by selling credit-linked notes to institutional investors. Morgan Stanley is also exploring other ways to hedge or syndicate part of its data-centre risk, the people said, and there is no guarantee the early-stage SRT talks will result in a deal.
Morgan Stanley, one of the key players in financing the artificial-intelligence race, is considering offloading some of its data-centre exposure via a so-called significant risk transfer.
The bank has held preliminary talks with potential investors about an SRT tied to a portfolio of loans to businesses involved in AI infrastructure, according to people with knowledge of the matter, who asked not to be identified because the information is confidential.
