Deutsche Bank’s retained synthetic risk transfer exposures climbed to 38.7 billion euros by late 2025, up 15% from 33.7 billion euros the prior year, as the German bank uses these instruments to manage concentration risk tied to its massive AI data center lending book. Hyperscaler infrastructure spending is projected to hit 3 trillion dollars by 2030, driving banks like Deutsche Bank to hedge their exposure, with the German lender having provided over 1 billion dollars in combined debt financing to EcoDataCenter in Sweden and 5C in Canada. One SRT deal completed in 2025 was tied to approximately 6.9 billion dollars worth of corporate loans. The European SRT market is expanding rapidly, with projections suggesting it could encompass roughly 500 billion euros in protected loans by mid-2026, as JPMorgan and Morgan Stanley also explore these techniques for their own data center loan books.
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