Pivot to AI

20260511 - Banks turn data centre loans into 2008-style time bombs


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CORRECTION: of course you don't "lend" the tranches out. You sell them (as financial products).

Sources:

  • Banks seek to offload risk to avoid 'choking' on data centre debt https://www.ft.com/content/08aba5e4-5834-4e79-a48d-989a2c5bad0f

Previously on Pivot to AI:

  • Silicon Valley and Wall Street invent collateralized GPU obligations. Surely this will work out fine https://pivot-to-ai.com/2024/11/04/silicon-valley-and-wall-street-invent-collateralized-gpu-obligations-surely-this-will-work-out-fine/
  • Pumping the AI bubble: a data center funding craze with 'novel types of debt structures' https://pivot-to-ai.com/2024/11/19/pumping-the-ai-bubble-a-data-center-funding-craze-with-novel-types-of-debt-structures/

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Pivot to AIBy David Gerard