AI shock scenario could hit banks and insurers via private credit, warns UBS

AI shock scenario could hit banks and insurers via private credit, warns UBS Proactive uses images sourced from Shutterstock A rapid shock from artificial intelligence could trigger a sharp rise in defaults across the US credit market, UBS has warned, with the biggest hit landing in private credit. Following increasing calls from investors wanting to talk about AI disruption, strategist Matthew Mish updated his views on what he called “a tail risk scenario” – ie not the bank’s base case – around the poss ...