Software Loan Market in Turmoil Amid AI Boom and Obsolescence Worries
ByAinvest
Sunday, Feb 1, 2026 9:17 pm ET1min read
DAY--
The software loan market is experiencing a meltdown due to concerns over the impact of artificial intelligence (AI) on software business models. Loan prices for companies such as Cloudera, Dayforce, and Rocket Software have dropped, while investors are becoming increasingly worried about the future of these companies. The software loan market accounts for 12% of the Bloomberg US Leveraged Loan Index, and software debt in collateralized loan obligations has notched the worst total returns this year.
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