Software Sector Faces Higher Refinancing Risks Amid Persistent High Interest Rates
Apollo Global Management’s chief economist Torsten Slok warns that the software sector is disproportionately vulnerable to the 'higher-for-longer' interest rate environment. While many sectors in the broader market have successfully reduced their debt maturity walls for 2028 by approximately 22%, software issuers have only achieved a 10% reduction. This disparity suggests that software companies face significant mounting pressure as they approach upcoming refinancing deadlines. The inability to aggressively deleverage or push out maturities compared to other sectors leaves the industry more exposed to elevated borrowing costs and potential liquidity constraints.
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Topics: debt maturity interest rates refinancing risk software industry