Private markets face a worsening software debt challenge as more than USD 330bln of high-yield, leveraged loan and business development company-linked software and technology debt comes due through 2028, Bloomberg reports
- Companies refinancing in coming months face pressure from fears that AI could devalue or replace products, as well as potentially higher borrowing costs linked to the Middle East war
Context
This headline highlights a significant challenge for private markets as a substantial volume of high-yield and leveraged loans tied to software and technology is coming due. The combination of potential AI disruption to product value and rising borrowing costs due to geopolitical factors creates a precarious refinancing environment, possibly impacting investor sentiment and credit conditions across sectors.
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