Investors are offloading software loans in debt vehicles at a discount, in the latest sign of pain in the software industry, which is being upended by AI.
In recent weeks, several managers of collateralized loan obligations (CLOs) have started exploring ways to reduce their exposure to software, as they grapple with the prospect of a wave of rating downgrades on junk bonds and ​potential defaults down the line, according to three CLO managers and several credit industry analysts.
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Investors are offloading software loans in debt vehicles at a discount, in the latest sign of pain in the software industry, which is being upended by AI.
In recent weeks, several managers of collateralized loan obligations (CLOs) have started exploring ways to reduce their exposure to software, as they grapple with the prospect of a wave of rating downgrades on junk bonds and ​potential defaults down the line, according to three CLO managers and several credit industry analysts.