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UBS Analyst: AI Disruption Poised to Impact Credit Markets
AI’s rapid advancement is set to disrupt credit markets, with UBS analyst Matthew Mish predicting tens of billions in corporate loan defaults within a year. Private equity-owned software and data services firms are most exposed. Mish warns of a potential credit crunch if a severe AI transition occurs, with estimates of $75-$120 billion in defaults by 2026. The market’s slow adaptation to AI’s speed exacerbates this risk.
