{"id":276223,"date":"2026-02-10T03:34:08","date_gmt":"2026-02-10T03:34:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/276223\/"},"modified":"2026-02-10T03:34:08","modified_gmt":"2026-02-10T03:34:08","slug":"deutsche-bank-warns-software-debt-faces-ai-threat","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/276223\/","title":{"rendered":"Deutsche Bank Warns Software Debt Faces AI Threat"},"content":{"rendered":"

A downturn in the software and technology sectors could have an impact that rivals that of the energy sector\u2019s issues in 2016, Bloomberg\u00a0reported<\/a>\u00a0Monday (Feb. 9), citing\u00a0Deutsche Bank<\/a>\u00a0analysts.<\/p>\n

The analysts highlighted concentration risks to the speculative-grade credit market, saying that the software and tech sectors account for 14% and 16%, respectively, of that credit universe, according to the report. Those percentages amount to\u00a0$597 billion\u00a0and\u00a0$681 billion, respectively, per the report.<\/p>\n

The Deutsche Bank analysts said that total is \u201ca meaningful chunk of debt outstanding that risks souring broader sentiment, if software defaults increase,\u201d according to the report.<\/p>\n

There is also a threat of software-as-a-service firms\u2019 multiples and revenues being weighed down by the adoption of artificial intelligence tools, the report said.<\/p>\n

\u201cThe reality today has now changed from when many of these firms were initially financed,\u201d the Deutsche Bank analysts said, per the report. \u201cThe SaaS value creation model is not yet mature enough to withstand a rapid rollout of AI tools.\u201d<\/p>\n

It was reported Jan. 31 that software companies are seeing their\u00a0loan prices<\/a>\u00a0fall amid investors\u2019 concerns that AI advances, such as the coding capabilities of\u00a0Anthropic<\/a>\u2019s\u00a0Claude<\/a>\u00a0model, will make many software offerings redundant.<\/p>\n

Advertisement: Scroll to Continue<\/p>\n

\u201cA storm has hit the loan market,\u201d\u00a0Scott Macklin<\/a>, head of U.S. leveraged finance at asset manager\u00a0Obra Capital<\/a>, told Bloomberg at the time. \u201cThe heaviest calendar in months, largely repricing-driven but still overwhelming, has collided with mounting existential questions around software business models as AI reshapes the sector, which is the single largest in loans.\u201d<\/p>\n

PYMNTS reported Friday (Feb. 6) that as of Wednesday (Feb. 4), more than\u00a0$800 billion\u00a0in market value was wiped out of the enterprise\u00a0technology sector<\/a> after Wall Street analysts pointed to the disruptive potential of new enterprise AI tools from providers such as Anthropic that are designed to automate processes like contract reviews and legal briefings.<\/p>\n

The PYMNTS Intelligence report \u201cSmart Spending: How AI is Transforming Financial Decision Making<\/a>\u201d found that more than eight in 10 chief financial officers at large companies are either already using AI or considering adopting the technology.<\/p>\n","protected":false},"excerpt":{"rendered":"A downturn in the software and technology sectors could have an impact that rivals that of the energy…\n","protected":false},"author":2,"featured_media":276224,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[365,363,364,5399,8198,10527,111,43,139,69,739,145,741],"class_list":{"0":"post-276223","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-debt","12":"tag-deutsche-bank","13":"tag-loans","14":"tag-new-zealand","15":"tag-news","16":"tag-newzealand","17":"tag-nz","18":"tag-pymnts-news","19":"tag-technology","20":"tag-whats-hot"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/276223","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=276223"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/276223\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/276224"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=276223"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=276223"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=276223"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}