Application software loans, with $147B outstanding, hit hardest by AI fears

Continued AI disruption fears are reshaping how leveraged loan investors view software credits. Application software, with $147 billion in leveraged loan outstandings, is bearing the brunt of this intra-sector bifurcation, as its average secondary bids have fallen much further than credits within the infrastructure & data and cybersecurity software sub-sectors. With $32 billion of application software loans maturing through 2028, the refinancing or extension routes remain open, as a handful of r