A selloff in software debt has pushed billions of dollars of loans into distressed territory, rapidly repricing a market amid the threat of AI disruption.
More than $17.7 billion of US tech company loans in a Bloomberg index dropped to distressed trading levels during the past four weeks to the most since October 2022, according to data compiled by Bloomberg Intelligence. That figure, which swells the total tech distressed debt pile to about $46.9 billion, is dominated by firms in software-as-a-service, or SaaS, an industry seen as particularly vulnerable because AI is supplanting tasks like writing code and analyzing data. ...
