Software Bonds Reprice Amid AI Disruption

High-yield corporate bonds for software companies have fallen sharply in recent weeks as investors price in risks from AI disruption, Slashdot reports. Credit spreads on enterprise software debt have widened amid concerns that generative AI could erode subscription revenues, raise capital demands, and increase default risk. The repricing raises refinancing costs and could accelerate industry consolidation, pressuring firms that need to invest heavily in AI capabilities.