Miner Company
The Credit Market Lens: Software Stuck In A Trough
Credit risk in the software sector may still be understated, as weaker growth and less reliable sponsor support could push defaults higher over time, even as refinancing pressure remains low. If the sector weakens further, history suggests losses could be larger than investors expect, as relevant past periods of heavy stress have led to below-average recoveries, not just more defaults.
Credit risk in the software sector may still be understated, as weaker growth and less reliable sponsor support could push defaults higher over time, even as refinancing pressure remains low. If the sector weakens further, history suggests losses could be larger than investors expect, as relevant past periods of heavy stress have led to below-average recoveries, not just more defaults.