Software Makers Delay Debt Deals Amid AI

Reuters reported Monday (Feb. 23) that software companies are delaying or pausing debt deals as borrowing costs rise and lenders increase scrutiny amid concerns over AI-driven disruption. UBS expects defaults could rise 3–5% in a faster-disruption scenario versus market expectations of 1–2%, a shift already nudging leveraged-loan pricing and prompting SaaS vendors to experiment with token- and outcome-based pricing.