One of the world’s largest investment banks is exploring how to hedge against its exposure to the data center market.
Deutsche Bank executives have discussed methods to manage billions of dollars in debt on its balance sheet that are tied to the data center industry, the Financial Times reported, citing sources familiar with the talks.
Strategies discussed included shorting a collection of artificial intelligence-related stocks or using derivatives such as a synthetic risk transfer, according to the report.
Deutsche Bank’s exposure to the sector is centered on businesses that service hyperscalers like Alphabet, Microsoft and Amazon, with debt secured by long-term contracts, according to the…