Traders Rush to Dump Software Loans That Began Year at 100 Cents
Traders work on the floor of the New York Stock Exchange.
Photographer: Michael Nagle/BloombergLeveraged-loan traders are slashing their exposure to software debt — much of which entered 2026 priced at or near par — in a sign of how artificial-intelligence fears are rippling across the market.
Broadly syndicated loans for software businesses including Avalara Inc., Citrix, Dayforce Inc. and Proofpoint, among others, had slumped between 1 to 3 points in the secondary market from Friday to Tuesday, according to people trading the debt, who asked not to be named because the levels aren’t public. Those loans were all being quoted around 100 cents on the dollar as of Dec. 31.