The private credit market has a growing AI problem

Brendan McDermid/Reuters

• The issues surrounding alternative manager Blue Owl have thrust private credit back into the spotlight.
• AI-driven disruption, particularly in sectors like software, is increasingly being flagged as a risk.
• New research from UBS laid out a worst-case scenario for private credit.

It's not usually a good sign when a research firm issues a worst-case-scenario forecast. It's even more troubling when that firm adjusts its outlook to be more bearish just two weeks later.