Arini’s Lemssouguer Says AI Fear Risks Software Defaults

Fear of AI’s potential for disruption is enough to push up borrowing costs for software companies, causing problems for a sector that has a lot of debt, according to Arini Capital Management’s founder Hamza Lemssouguer.

“We will not need to see the disruption to see some of the issues,” Lemssouguer said in an interview with Bloomberg TV. “The market always gets ahead of it. The immediate issue that we see is the increase in cost of capital for a lot of these companies, which will eventually lead to significant defaults, disruption and dislocation in credit markets.”