AI Lending Risk: How Banks Earn Fees And Transfer Exposure

AI lending has become a case study in how Wall Street's fee machine operates. In this episode, Felix Nikolas Prehn, a former investment banker, traces the mechanics of a five billion dollar loan arranged by Goldman Sachs and JP Morgan for AI chip company Volta Infrastructure. The banks collected fees but declined to hold most of the loan, placing 3.7 billion dollars on a best efforts basis for sale to pension funds and insurers. The loan carries an 11 per cent interest rate, well above the ju...