Wall Street Breakfast UBS hikes private credit default view
Feb 25, 2026
UBS warns private credit defaults could surge amid AI disruption fears. AMC plans to shutter underperforming theaters and trim expansion. The White House pushes tech firms to build dedicated AI data centers under a rate-protection pledge. Rapid shifts in AI policy and media M&A ripple through market movers and upcoming corporate catalysts.
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UBS Raises Private Credit Default Risk On AI Shock
- UBS now models a worse-case 15% default rate for private credit if rapid AI disruption occurs.
- The firm raised its leveraged loan and high-yield worst-case forecasts to 6% and 10% respectively after fresh AI-driven unemployment fears.
AMC Plans To Close Underperforming Theaters
- AMC's CFO Sean Goodman said the company will continue closing underperforming theaters and open only a few profitable locations.
- About 85 leases a year can be renewed or terminated and planned 2026+ openings are included in a $175–225M CapEx range.
White House Pushes Tech Firms To Self Fund AI Power
- President Trump said major tech firms developing AI data centers must cover their own electricity under a 'rate protection' pledge.
- The plan would force companies to generate dedicated power rather than draw extra load from local grids and a White House meeting is expected in early March.