Deutsche Bank: Software and technology sectors pose significant concentration risk to the speculative-grade credit market
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Glonghui, February 10th|Deutsche Bank analysts pointed out that the software and technology industries constitute one of the most significant concentration risks ever in the speculative-grade credit market. The scale of the software and technology industries in the speculative-grade credit market reaches $597 billion and $681 billion respectively, accounting for approximately 14% and 16% of the total. Speculative-grade debt includes high-yield bonds, leveraged loans, and US private credit. Analysts noted that the relevant scale represents a considerable amount of outstanding debt, and if defaults in the software industry rise, it could drag down overall market sentiment. Its potential impact could be comparable to the energy sector crisis in 2016.
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