Wall Street Monitors Private Credit Risk Amid AI Disruption and Outflows
Wall Street is closely monitoring private credit risk as concerns over AI disruption, fund outflows, and credit stress impact the sector. Major U.S. lenders have disclosed over $108 billion in private credit exposure, raising questions about the resilience of the $3.5 trillion asset class. The default rate for U.S. corporate borrowers in private credit reached a record 9.2% in 2025, according to Fitch Ratings.
Topics: AI disruption default rates financial risk market concerns private credit