Spanish bank BBVA is nearing completion of a $2 billion infrastructure-linked securitized risk transfer (SRT) to hedge exposure from its growing artificial intelligence lending portfolio.
The transaction allows BBVA to offload AI-related credit risk to capital markets investors, reducing the bank's balance sheet exposure as demand for AI infrastructure financing accelerates.
SRTs enable financial institutions to transfer risk without selling assets outright. By packaging AI lending exposure into a securitized structure, BBVA can maintain client relationships while distributing risk across the market.
The move reflects broader banking sector concerns about rapid AI adoption and the concentration of lending to the sector. Major financial institutions face elevated risk from competitive pressures to finance AI infrastructure buildouts, while credit quality remains uncertain given the sector's immaturity.
BBVA's transaction signals growing sophistication in risk management tools as banks balance growth opportunities against prudent risk controls. The $2 billion size underscores the scale of AI lending now flowing through traditional banking channels.
Singapore upgraded its economic growth forecast for 2026, citing the artificial intelligence boom as a key driver. The revision comes as AI demand lifts trade activity despite Middle East tensions.
Anthropic has signed a $9.1 billion agreement with Riot Platforms, a Bitcoin mining company expanding into AI data center services. The deal reflects growing competition for computing capacity as demand for large language models accelerates.
Trump Media's losses deepened to $238 million as the company abandoned a cryptocurrency venture and launched a new paid service offering faster access to market-moving posts from President Trump.