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Muddy Waters' Founder Establishing Options 'Short Position' on Corporate Bond ETFs to Hedge AI-Induced Economic Downturn Risk
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Carson Block, founder of the short seller Muddy Waters, stated in an interview with Bloomberg that he is establishing options "short positions" on BlackRock's (BLK.US) high-yield and investment-grade corporate bond ETFs to hedge against the risk of an economic downturn potentially wrought by AI. He noted that AI-induced unemployment could widen credit spreads. Block mentioned that AI will change everything, and in many leading companies and technology sectors, those who best utilize AI can already replace the work of seven colleagues. He believed the market will reflect the risks associated with large-scale AI-related layoffs before they actually occur, and that AI could eventually impact the market akin to the global financial crisis. AASTOCKS Financial News Website: www.aastocks.com |
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