Updated
Updated · Bloomberg · May 27
Blackstone, Guggenheim Cut Software in CLO Deals as AI Risks Hit $560 Million Sale
Updated
Updated · Bloomberg · May 27

Blackstone, Guggenheim Cut Software in CLO Deals as AI Risks Hit $560 Million Sale

2 articles · Updated · Bloomberg · May 27
  • $560 million marked the size of a Guggenheim CLO recently priced without any software loans, reflecting a broader pullback by major managers from the sector.
  • Blackstone—the largest US CLO manager—is also trimming software holdings in new deals as investors grow more cautious that AI could disrupt software companies' business models and credit quality.
  • The shift affects new collateralized loan obligations, which bundle leveraged loans into tranches with different risk and return profiles, making sector selection more sensitive to perceived downside.
  • The moves suggest AI concerns are starting to reshape credit-market underwriting, not just equity valuations, in one of leveraged finance's biggest buyer bases.
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