News Sharing
For sharing news, please enter the email address of you and the receiver, then press SEND button.*Mandatory Fields
Receiver*
Enter email addresses, separated by semicolon (;). E.g. a@a.com;b@b.com
Your email address*
 Content Sharing
M Stanley: AI to Deal Blow to Software Industry; Direct Loan Default Rate May Hike to 8%
In Morgan Stanley's view, the disruptive impact of AI has not yet had a material effect on the fundamentals of private credit. However, the elevated leverage and looming maturi...
Reset
Send
The window will close in 5 seconds
M Stanley: AI to Deal Blow to Software Industry; Direct Loan Default Rate May Hike to 8%
Close
Recommend
2
Positive
3
Negative
5
 
SHORT SELL
 
STOCK INFO
aacat by AASTOCKS
Open a new trading account to get NVDA share!

In Morgan Stanley's view, the disruptive impact of AI has not yet had a material effect on the fundamentals of private credit. However, the elevated leverage and looming maturity walls could push default rates to levels not seen since the pandemic. It is anticipated that the default rate for direct loans will climb to 8%.

Morgan Stanley noted that the credit fundamentals of software loans are challenged with the highest leverage and the lowest coverage ratios across major sectors. Although defaults on public and private loans have previously slowed, the emergence of AI's disruptive effects is expected to further increase default rates.

Related NewsUS Mar ADP Employment Change at 62,000, Below Previous 63,000; Forecast 40,000

AASTOCKS Financial News
Copyright(C) AASTOCKS.com Limited 2000. All rights reserved.
Disclaimer: AASTOCKS.com Ltd, HKEx Information Services Limited, its holding companies and/or any subsidiaries of such holding companies endeavour to ensure the accuracy and reliability of the Information provided but do not guarantee its accuracy or reliability and accept no liability (whether in tort or contract or otherwise) for any loss or damage arising from any inaccuracies or omissions.