AI disruption could risk $150B in US leveraged loans: JPMorgan
JPMorgan just flagged that up to $150 billion in US leveraged loans—bundled into financial products called CLOs—could be at risk as AI keeps shaking up certain industries.
This warning came out at the SFVegas 2026 conference, based on how markets are reacting to sectors most exposed to AI.
What are CLOs?
CLOs (collateralized loan obligations) are basically bundles of risky business loans sold as investments.
As AI-related disruption rises, it's posing a risk to companies (particularly software), potentially making it tougher for some borrowers to pay back these loans—and that stress ripples out to investors.
Banks' exposure to AI-linked industries
Big banks have about $150 billion in outstanding C&I exposure to industries closely linked to AI, which is a decent chunk of their financial cushion.
Meanwhile, software company loans are seeing selloffs: roughly $51 billion of B- or lower-rated software debt will come due in 2028 and about $50 billion in 2029.
If high interest rates persist and capital injections decline, that could reduce spending on things like data centers and chips, potentially weighing on broader tech investment.