Deutsche Bank: Software and technology sectors pose significant risks for speculative-grade credit

Deutsche Bank analysts pointed out on Monday that the software and technology sectors pose one of the historically most significant concentration risks to the speculative-grade credit market.

The bank's report stated that the scale of the software and technology sectors in the speculative-grade credit market reached $597 billion and $681 billion, respectively, accounting for approximately 14% and 16% of the total. Speculative-grade debt includes high-yield bonds, leveraged loans, and U.S. private credit.

Analysts noted that the related scale represents a considerable amount of outstanding debt, and if default rates in the software sector rise, it could dampen overall market sentiment, with potential impacts comparable to the 2016 energy sector crisis