KBRA Releases Research – ABS Venture Debt: Artificial Intelligence, Real but Contained Risk
31 Mar 2026 | New York
KBRA releases research that explores the credit implications of artificial intelligence (AI) in ABS venture debt, highlighting both emerging risks and the extent to which they remain contained.
AI is an emerging area of focus for private credit markets, particularly for lenders with exposure to software and technology borrowers. AI-related disruption is expected to unfold gradually but is already influencing lender behavior, borrower performance, and investor sentiment, as noted in KBRA’s Private Credit: Deep Dive on AI and Software. KBRA is monitoring potential implications for ABS venture debt transactions (which also include health care and other relatively sector-specific ABS transactions), given the presence of software and technology companies in venture lending portfolios, where cash flows depend on borrower performance, valuation, and refinancing capacity.
Click here to view the report.