Distressed US Software Loans Hit Record $40.5 Billion

Distressed US software leveraged loans hit $40.5 billion by March 2026, up from $10.7 billion, per Yahoo Finance. Leveraged loans are corporate debt trading below face value, held in mutual funds and ETFs. The fourfold surge signals software stress has moved from stocks into credit markets, where bond-fund investors' recovery hinges on issuer restructuring.