Distressed US Software Leveraged Loans Hit Record $40.5 Billion

Distressed US software leveraged loans reached a record $40.5 billion by March 2026, nearly quadrupling from $10.7 billion, per Yahoo Finance (April 17). Leveraged loans — corporate debt traded below par — are held in mutual funds and ETFs. The fourfold surge signals software-sector stress has spread from equities into credit markets, where recovery for ordinary bond-fund investors depends on issuer restructuring.