WSJ: Software Loans Hit Rough Patch Even Before AI Fears Triggered 'SaaS-pocalypse'
- A WSJ Markets piece published July 3 highlights that speculative-grade software loans were already under stress before the recent AI-driven selloff, with roughly $25 billion of software debt reportedly trading below 80 cents on the dollar and PIK interest usage surging industry-wide from ~5% to over 11%.
- The piece warns of a refinancing cliff, noting about $98 billion of U.S. software loans maturing through 2028, amplifying concerns that private credit's estimated $3 trillion exposure to the sector could turn systemic (https://www.wsj.com/finance/software-loans-hit-rough-patch-even-before-ai-fears-triggered-saas-pocalypse-48f372d5).
- The analysis ties loan stress to the shift from per-seat SaaS pricing to consumption/agentic-AI models, a theme that has hammered software equities in recent sessions.