HSBC Plans to Hedge Over $1 Billion in Data Center Loan Risk

Odaily: HSBC Holdings is reportedly planning a risk transfer transaction to hedge its loan exposure related to data centers. As the AI investment boom continues to heat up, more and more banks are also considering similar transactions. HSBC is in preliminary discussions with investors, considering a significant significant risk transfer (SRT) transaction for over $1 billion in loan arrangements used to finance AI infrastructure such as data centers. People familiar with the matter, who declined to be named because the information is not public, said that the terms, including the size of the transaction, may still be adjusted as discussions progress.