BofA: Data Center Buildout Opens $100B CLO Opportunity

The pitch is notable less for the headline figure than for the channel it implies: AI infrastructure debt migrating into broadly syndicated CLO portfolios, where it would sit alongside conventional corporate credit and be rated, tranched and sold to the same investor base. That matters for credit investors tracking correlation risk, since GPU and data center term loans carry depreciation and counterparty profiles unlike typical leveraged borrowers, and for the hyperscalers whose funding mix could shift toward securitized structures. Whether rating agencies and CLO managers treat this exposure as a distinct asset class, or absorb it into existing buckets, is the open question.