Can CLO credit analysts be replaced by AI?
Do you guys think there can be an AI tool that replaces credit analysts for CLOs?
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very unlikely, certainly in the next few years
I think in 5+ years we could see some real headwinds for younger analysts/associates who recently have entered the space or are going to. It doesn't exit into corp jobs and other roles well either so there is some risk here. I think AI just gets better and cheaper. Could lead to comp compression.
Sure, in 5+ years is that possible. But it would be no different for CLOs than any other sector, whether in finance (IB, PE, HF, PC, etc), or any other white collar profession (law, consulting, corp jobs). I dont buy the dooms day scenario. While different, same was said in the early 2000s with outsourcing to India, didn't happen. In theory, in such a scenario, fees would also compress, so prob minimal net gains.
I don’t think so, I am seeing AI as a tools to make our life more easier not to replace analyst.
But wait and see,
No. Everyone just getting better at their jobs, learning more, putting together better materials, more efficient information synthesis. But just like any other buy side seat you still need human beings.
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