Business
Software Selloff Extends to Loan Market
As of Tuesday, the average price of software company loans was 91.27 cents on the dollar, down from 94.71 cents at the end of last year.
At the end of January, the extra yield, or spread, that investors demand to hold software loans over a benchmark short-term interest rate had jumped to 5.95 percentage points from 4.78 percentage points at the end of December.
Some $25 billion of software loans were trading at distressed levels–below 80 cents on the dollar–at the end of January, up from $11 billion a month earlier. That accounted for nearly a third of all distressed loans.