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

party like it's 2007 Patreon: https://www.patreon.com/davidgerard Ko-Fi: https://ko-fi.com/A1529D5 Buy us useful things: https://www.amazon.co.uk/hz/wishlist/ls/3Q8VZW46J6DM6 Get an extremely cool Pivot to AI shirt or mug: https://pivot-to-ai.redbubble.com Send in your story tips: [email protected] 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/ Full Pivot to AI playlist: https://www.youtube.com/playlist?list=UU9rJrMVgcXTfa8xuMnbhAEA