Wall Street banks have begun offloading $18bn of debt linked to the $55bn leveraged buyout of Electronic Arts, a test of investor appetite amid market pressures from the Iran war and AI advances.

The deal, backed by a $36bn equity commitment from a Saudi-led consortium, comes as riskier bonds face headwinds. Banks are racing to de-risk amid a backlog of macro concerns, launching a $5.75bn dual-currency loan and a $9bn high-yield bond sale. JPMorgan is aggressively courting clients for the $3.25bn term loan, even hosting EA's CEO at its Miami conference.

Investors see 3.5-3.75% yields on the loans, below 7.5% all-in, as attractive despite AI disruption fears. EA management argues AI could boost gaming, but some investors remain wary, citing narrow pricing despite robust demand. The secured bonds and unsecured notes carry BB and Ba3 ratings, reflecting the elevated risk profile of this massive transaction.