Morgan Stanley has had early-stage talks with potential investors who could help it mitigate risk related to a portfolio of loans to data center-focused businesses, Bloomberg reported, citing an anonymous source.
The bank discussed using a so-called significant risk transfer, a type of securitization that transfers the credit risk of a portfolio or collection of assets to third-party investors, who are paid fees by the bank to take on that risk.
Morgan Stanley is looking into other ways to manage its credit risk on this portfolio and may ultimately not use the risk transfer, sources told Bloomberg.
The New York-based bank has been involved in financing…