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Oh No The Capital Allocation System Allocated Capital Badly Again
May 4, 2026
Posted 3 hours ago by
You can hear the sound of chanting growing: Banks are hunting for new ways to offload risks tied to a glut of data centre debt as the race to build AI infrastructure stretches financing limits among the largest global lenders. Groups including JPMorgan Chase, Morgan Stanley and SMBC are trying to find ways to distribute portions of data centre-related deals to a broader range of investors, according to people familiar with the matter.
bailout Bailout BAILOUT BAILOUTJust put wafer thin bits of shit in with the good stuff and no one will notice. Distributing: “The sizes we’re talking about . . . they’re out of scale to anything we’ve thought about, ever,” said Matthew Moniot, co-head of credit risk sharing at Man Group. “Banks very quickly start choking.” Lenders, including JPMorgan and MUFG, have spent more than six months distributing 38bn of construction debt tied to a data centre project leased to Oracle in Texas and Wisconsin, people familiar with the matter said.Lenders, including JPMorgan and MUFG, have spent more than six months distributing 38bn of construction debt tied to a data centre project leased to Oracle in Texas and Wisconsin, people familiar with the matter said.
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