AI Disruption Fears Raise Software Financing Concerns, Prompting Firms to Pause Debt Deals

Generative AI and agentic tools can independently perform tasks once handled by SaaS products, prompting investors to question traditional software vendors' subscription revenue and pricing power. Fitch said technology accounts for 17% of the leveraged-loan market, or about $260 billion, with software companies representing 60% of that total. Morgan Stanley estimates that half of the related loans are rated B- or lower, putting refinancing risk in the credit-market spotlight.

Reuters reported on February 23, 2026, that Team.blue had postponed the extension of a €1.353 billion loan and the repricing of a $771 million loan. Financing for the $5.3 billion acquisition of Qualtrics was later paused as well. By April 30, Blue Owl, Blackstone and Ares had responded to the concerns with risk assessments. Ares said 85% of its software investments were low risk, while about $1 billion was at least moderate risk.