(Feb 23): Software companies are delaying debt deals as higher borrowing costs and tougher scrutiny from lenders weigh on the sector, at a time when mounting pressure from artificial intelligence threatens their business models, industry sources said. U.S. stocks have also been roiled by AI, starting with investors dumping shares of software companies, then companies in sectors vulnerable to automation. Only 0.5% of outstanding software sector loans are due this year, while 6% are due in 2027, Fitch's Hoelmer said. On the high-yield side, only 0.7% of software debt is due this year and 8% in 2027, he added. Still, companies in the sector that have tried to tap U.S. debt markets have faced significantly higher borrowing costs from banks to underwrite the debt.

Source: The Edge Markets February 23, 2026 19:55 UTC