Software Sector Facing Debt Pressure



• 40B software debt matures in 2028
• Largest single year maturity
• Most rated B- or lower
• No investment grade debt

Total debt
• 100B due from 2026 to 2029
• 70B more after 2030

Risk factors
• Higher interest rates
• Weak balance sheets
• AI disruption increasing pressure
• Private credit heavily exposed

Market impact
• Software biggest leveraged loan sector
• About 12% of total market
• Refinancing getting harder
• Credit risk rising
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