UBS admits 25% to 35% of private credit faces AI disruption risk. Tech and business services are packed with it. None of this is priced in.

“Private credit exposure to AI disruption high, not priced in – UBS”

No kidding.

“…We estimate that 25–35% of private credit portfolios face elevated AI disruption risk.

Using BDC portfolios as a proxy (AUM of ~$450 billion, $350 billion of which is public), exposure to high disruption risk subsectors is most acute in technology (~24% of BDC holdings) and business services (~30% of BDC holdings),” according to credit strategist Matthew Mish in the UBS report published on Jan. 26….”

https://finance.yahoo.com/news/private-credit-exposure-ai-disruption-195654032.html