Software Poses ‘All-Time’ Risk to Speculative Credit, Deutsche Bank Warns

The software and technology sectors pose one of the all-time great concentration risks to the speculative-grade credit market, according to Deutsche Bank AG analysts.

They comprise $597 billion and $681 billion of the speculative-grade credit universe, or about 14% and 16% respectively, analysts led by Steve Caprio wrote in a Monday note. Speculative debt spans high-yield debt, leveraged loans and US private credit.