Private Credit Markets Face AI-Driven Risk

Private credit markets are facing new uncertainty after Anthropic unveiled AI tools last week, triggering sell-offs in software data providers and investor losses at asset managers Ares, Blue Owl, KKR, TPG, Apollo and BlackRock. Analysts and firms including UBS, PitchBook and Moody's warn that software-heavy loans — about 17% of BDC investments by deal count — could see higher default rates, with UBS estimating defaults up to 13% under an aggressive disruption scenario.