Nomura: total returns for software debt in collateralized loan obligations have been lower than all other sectors in 2026, amid fears about AI's impact on SaaS
Amid broad euphoria in credit markets, one type of debt is facing growing fear. — Software companies, larded up with debt …
“Bonds of software companies were also hit, with prices on notes from cloud computing firm Rackspace Technology Global Inc. as well as CDK Global, which provides software for car dealerships, dropping this week.”
Bit under the radar, but interesting: www.bloomberg.com/news/article... Harder to get loans for a software company if everyone thinks AI is about to eat software. If AI turns out to be a bubble, this'll be Exhibit A for “popped bubbles don't destroy, they reveal destruction.”