AI disruption could hit credit markets next, UBS analyst says
CNBC: UBS analyst warns of potential corporate loan defaults due to AI disruption risk.
UBS analyst Matthew Mish predicts a significant increase in corporate loan defaults as AI disruption threatens software and data services firms, particularly those owned by private equity. The rapid advancements in AI technology have accelerated expectations for market disruption, leading to investor concerns and potential financial repercussions in the credit market. Mish highlights the possibility of a credit crunch and broad repricing of leveraged credit if companies fail to adapt quickly to the changing landscape. The winners in this transformative period are likely to be companies with strong balance sheets and the ability to implement AI effectively, while those with high levels of debt may face challenges ahead.
