JPMorgan Warns Up to $150 Billion of Loans in CLOs Face AI Risk

Anywhere from $40 billion to $150 billion of leveraged loans packaged into US collateralized loan obligations could be disrupted by the artificial intelligence boom, according to JPMorgan Chase & Co.

That’s because those loans fall within sectors most associated with AI risk, according to the Wall Street lender, which released its estimate as a recap of the SFVegas 2026 conference where software’s impact on corporate CLOs was “the topic du jour.”

CLOs offer investors exposure to floating-rate debt, rather than fixed-rate corporate bonds. They do this by bundling leveraged loans into bond-like products with differing levels of risk and ...