Story perspectives

AI Threatens Software Sector, Triggers Private Credit Turmoil

2/10/2026

Summary

Story summary

Private credit markets face renewed uncertainty as AI tools threaten software companies.
The software sector's vulnerability has driven stock declines in asset managers, with Ares Management down over 12% last week.
Deutsche Bank analysts warn software and technology pose a major risk to speculative-grade credit, comprising $597 billion and $681 billion.
Jeffrey Hooke of Johns Hopkins University says liquidity issues in private credit are worsened by AI challenges.

1 of 1

Story summary

Private credit markets face renewed uncertainty as AI tools threaten software companies.
The software sector's vulnerability has driven stock declines in asset managers, with Ares Management down over 12% last week.
Deutsche Bank analysts warn software and technology pose a major risk to speculative-grade credit, comprising $597 billion and $681 billion.
Jeffrey Hooke of Johns Hopkins University says liquidity issues in private credit are worsened by AI challenges.