<div id="readability-page-1">Banks are helping finance enormous AI-driven data-center projects but are offloading much of the rising credit risk as debt issuance explodes. Oracle, Meta, and Alphabet’s massive bond sales pushed 2025 global issuance above $6.46 trillion, and companies now plan over $5 trillion in AI-infrastructure spending. To avoid concentrated exposure, lenders are shifting risk to investors through credit derivatives, credit-linked notes, and significant-risk-transfer deals. Banks and private-capital firms are developing new hedging tools as hyperscaler borrowing surges and single-day bond sales hit $30 billion.</div>

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<p>Banks are financing large AI data-center projects but are offloading credit risk due to soaring debt issuance. Massive bond sales by Oracle, Meta, and Alphabet have pushed global issuance above $6.46 trillion, with $5 trillion planned for AI infrastructure. To manage exposure, banks are using credit derivatives and risk-transfer deals, while developing new hedging tools amid rising borrowing and bond sales.</p>

- Banks are financing large AI-driven data-center projects while transferring rising credit risk due to increased debt issuance.  
- Global bond issuance surpassed $6.46 trillion in 2025, with companies planning over $5 trillion in AI-infrastructure spending.  
- To mitigate concentrated exposure, lenders are utilizing credit derivatives and developing new hedging tools as hyperscaler borrowing increases.  

Banks hedge rising exposure as AI debt soars