Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning.

It's good to have you here on this Wednesday, February 25th. I'm Julie Morgan.

Strategists at UBS Group now warned that default rates in private credit could climb to as high as 15%. That's two percentage points

above the firm's forecast issued less than a month ago. In that earlier report, UBS cautioned that

direct lenders might face defaults of around 13% if artificial intelligence leads to an aggressive

disruption across corporate borrowers.

But that view became even more bearish in recent weeks as fears about AI upending the U.S.

economy deepened.

The report published on Tuesday said, what is new?

A clearer catalyst, rapid, severe AI disruption.

Concerns about such a scenario have intensified in recent days.

Stocks opened the week lower after a report from Cetrini Research rattled markets by outlining a scenario

in which advances in AI push U.S. unemployment into the double digits by 2028. The strategists also flagged

elevated risk in other credit markets, projecting worst-case default rates of up to 6% for leverage

loans and 10% for high-yield bonds, above the estimates of up to 4% and 8% in the previous report.

The CFO of AMC Entertainment, Sean Goodman on Tuesday, told investors there's a significant

opportunity to continue closing underperforming theaters.

He said on the Post-Earnings conference call that the company has the option to renew

or terminate roughly 85 leases a year. That's about 10% of its locations. Goodman added that AMC

will be closing more theaters than they open and that the new ones that they're opening are generating

significantly more profit than the ones they close.

The remarks followed the company's report of lower fourth quarter attendance

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