Man Group Warns AI Credit Markets Face 'Violent' Correction as Risk Mispricing Deepens for H2 2026

According to Man Group's outlook for the second half of 2026, the $228.7 billion asset manager warned that AI credit markets face a significant correction risk due to structural mispricing. Strategists at Man Group said public market credit investors in the AI space bear execution risk and buildout delays but receive no equity upside, creating an "uncomfortable asymmetry." The firm is "particularly concerned" about high-yield and leveraged loan issuance where borrowers remain cash-flow negative. However, Man Group stopped short of advocating avoidance, instead recommending rigorous credit selection, diversification into European and emerging-market credit, and selective positioning in Japan and Hong Kong.
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