---
title: "Banks hedge rising exposure as AI debt soars"
description: "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 "
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/268785032.md"
published_at: "2025-12-05T16:55:31.000Z"
---

# Banks hedge rising exposure as AI debt soars

> 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.

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.

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---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.