DoubleLine Capital LP and Oaktree Capital Management are positioning for a potential downturn in artificial intelligence-driven credit markets. The two firms are actively purchasing debt securities that would perform well if the current AI boom reverses course and triggers widespread credit stress.

These credit specialists are essentially buying insurance against an AI credit bust. Their strategy involves targeting debt instruments that could gain value as credit conditions deteriorate, suggesting concerns about the sustainability of AI-fueled borrowing and investment activity.

The move reflects growing skepticism about whether AI companies can maintain their rapid growth trajectory. Both firms manage substantial portfolios and their debt purchases signal they expect some AI ventures to struggle meeting obligations as the market matures.

Investors are watching closely as AI valuations reach elevated levels. DoubleLine and Oaktree's positioning suggests experienced credit managers see risks that retail investors might be missing in the AI enthusiasm.