JPMorgan Says Up to $150 Billion CLO-Held Loans Face AI Risk

Up to $150 billion worth of leveraged loans held inside US collateralized loan obligations fall within sectors that are at risk of being disrupted by AI, according to JPMorgan strategists.

• JPMorgan examined software, as well as other sectors, pegging the value of loans in sectors most associated with AI risk at between $40 billion and $150 billion, according to a Thursday note from strategists led by Rishad Ahluwalia
• Managers of CLOs have been sifting through portfolios for weeks to sniff out which loans face business risks from AI, fueling bouts of selling
• Investors who gathered at a recent industry conference, ...