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.
As big funds flee software, are contrarian investors now finding the best AI-era bargains?
Is the tech 'SaaSpocalypse' a warning sign for a systemic private credit market collapse?