From Startup Fortune · · 1m 20s
Banks Sell AI Data Center Debt at Discount
Banks offloading $38 billion AI data center debt as market distrusts risk.
In brief
Banks offloading $38 billion AI data center debt as market distrusts risk. Banks are selling pieces of AI data center debt they financed at a discount due to market distrust of repayment risks. Originally reported by Startup Fortune.
Banks offload AI data center debt
JPMorgan Chase and Mitsubishi UFJ Financial Group spent over six months trying to sell pieces of a $38 billion construction loan tied to Oracle-linked data centers in Texas and Wisconsin.
Debt discount signals market shift
Lenders now offer discounts to non-bank buyers to move the last scraps of debt, showing declining confidence in repayment.
CoreWeave bond yields spike
CoreWeave bonds traded at a record 14.5% yield in October after pricing at 9.625% in June, indicating market distrust.
Credit default swaps rise
Credit default swaps on CoreWeave spiked to 8.81 percentage points in December 2025 before easing to 4.5 points, signaling distress.
CoreWeave debt and costs
CoreWeave's total debt reached $35 billion as of June 30, with interest expense hitting $640 million last quarter.
IMF warns of AI risks
The IMF warned that weaker AI investment could trigger a credit correction for institutions holding 22% of global banking assets.
Banks still active in AI lending
Blue Owl's Stack Infrastructure seeks a $5.9 billion loan for a Melbourne project, showing lending continues despite market shifts.
The essence
Banks are selling pieces of AI data center debt they financed at a discount due to market distrust of repayment risks.
