The U.S. Securities and Exchange Commission has made it easier for data center owners to sell asset-backed securities, as the AI boom expands deeper into financing markets.
The regulator’s clarification came in response to a letter from law firm Latham & Watkins. The U.S. markets regulator said that the fixed-income or other securities issued in data center securitizations of the type described in the letter are not asset-backed securities.
Asset-backed securities are investments created by pooling together financial assets that generate regular cash flows, then selling securities to investors that are backed by those cash flows. Soaring demand for AI computing has pushed companies to seek new ways to raise capital needed for the expansion.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
