JPMorgan Marks Down Software Loans on AI Disruption Risks

JPMorgan provides financing to private credit firms secured against the corporate loans they hold, so lower collateral valuations directly reduce their borrowing capacity. Software accounts for about 12% of the Bloomberg U.S. Leveraged Loan Index. With AI automation threatening to weaken established business models, the sector has become a key risk for the roughly $2 trillion private credit market.

The Financial Times reported on March 10, 2026, that JPMorgan had marked down some loans to software companies in private credit portfolios and tightened financing for the institutions holding them. The bank did not disclose the size of the markdowns or the amount involved. By February 4, more than $800 billion had been wiped from the market value of enterprise technology stocks, showing that concerns over AI had spread from equities to credit markets.