No signs of relief from the impact of AI yet, traders rush to sell software industry debt exposure
Wallstreetcn·
- Leveraged loan traders are significantly reducing exposure to software industry debt, indicating market concerns about AI’s impact on credit markets.
- Loans for companies like Avalara, Citrix, Dayforce, and Proofpoint dropped by 1 to 3 points in the secondary market this week, following high valuations close to par at the end of 2025.
- The sell-off of software loans, previously backed by substantial private equity funding, has spread to broader U.S. credit risk indicators, which reached their lowest level since November 2025.