Feb. 3 at 9:39 PM
$PGY Shares of stocks with significant private credit market holdings were diving on fears about exposure to the industries being disrupted by artificial intelligence, most notably, software.
Shares of Blue Owl, TPG, Ares Management and KKR were all down by double digit percentages on Tuesday. Apollo Global was off by 7%. BlackRock shed 5%.
Publicly traded software stocks have been slammed this year as investors grew increasingly concerned about AI eating into their future growth and profit margins as companies use programs like Anthropic’s Claude Code to build their own software. The iShares Software ETF is down 20% this year, including another 5% decline on Tuesday.
UBS analysts estimate 25% to 35% of the private-credit market is exposed to the risk of AI disruption (other sources say that software, specifically, accounts for about 20 percent of outstanding loans for private-direct lenders). By comparison, the high yield corporate bond market (Using the iShares iBox…..CNBC
