AI Boom Is Triggering a Loan Meltdown for Software Companies: Credit Weekly

(Bloomberg) -- Amid broad euphoria in credit markets, one type of debt is facing growing fear.  Software companies, larded up with debt after leveraged buyout firms viewed their revenue as relatively predictable, have seen their loan prices drop this week. Investors are becoming increasingly worried that advances in artificial intelligence, including the growing coding capabilities of Anthropic’s Claude, will leave many software products and services obsolete. A Cloudera Inc. loan fell by 7 cents on the dol ...