{"slug": "bloomberg-us-leveraged-loan-index-sees-prices-fall-in-10-of-12-sessions-as", "title": "Bloomberg US Leveraged Loan Index sees prices fall in 10 of 12 sessions as software sector implodes", "summary": "The Bloomberg US Leveraged Loan Index fell 1.34% in February 2026, its worst monthly decline since 2022, driven by a collapse in software loans amid AI fears. Over $17.7 billion in software debt turned distressed in four weeks, with total tech distressed debt reaching $46.9 billion.", "body_md": "# Bloomberg US Leveraged Loan Index sees prices fall in 10 of 12 sessions as software sector implodes\n\nThe AI fear trade is hammering leveraged loans, with over $17.7 billion in software debt turning distressed in just four weeks\n\nThe Bloomberg US Leveraged Loan Index, a benchmark that tracks USD-denominated, high-yield, floating-rate institutional loans, is experiencing its worst stretch of price action since 2022. The average price across the index dropped 1.34% in February 2026.\n\n## Software is ground zero\n\nSoftware loans make up roughly 12% of the entire Bloomberg US Leveraged Loan Index. Software-related loans fell nearly 3% in January 2026 alone. The percentage of software loans trading above par collapsed from 47% to below 10%.\n\nHigh loan-to-value leveraged buyout names in the software space got hit hardest, with trading prices dropping 7 to 10 points.\n\n## Distressed debt is piling up fast\n\nOver $17.7 billion in software-related loans transitioned to distressed trading levels within just four weeks. That brought total tech distressed debt to approximately $46.9 billion.\n\nSub-$60 loans, essentially debt trading at deeply distressed levels where recovery expectations are grim, have been increasing notably. When a loan trades below 60 cents on the dollar, the market is pricing in a meaningful probability of default or significant restructuring.\n\nThe February 2026 decline being the largest monthly drop since 2022 is a notable benchmark. The 2022 selloff was driven by aggressive Federal Reserve rate hikes and broad macro uncertainty. This time, the catalyst is a sector-specific existential threat from AI concentrated in the index’s largest technology exposure.\n\n**Disclosure:** This article was edited by Editorial Team. For more information on how we create and review content, see our\n\n[Editorial Policy](https://cryptobriefing.com/editorial-policy/).", "url": "https://wpnews.pro/news/bloomberg-us-leveraged-loan-index-sees-prices-fall-in-10-of-12-sessions-as", "canonical_source": "https://cryptobriefing.com/bloomberg-leveraged-loan-index-prices-fall/", "published_at": "2026-06-15 01:47:30+00:00", "updated_at": "2026-06-15 02:12:50.972855+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-safety", "ai-policy"], "entities": ["Bloomberg US Leveraged Loan Index", "Federal Reserve"], "alternates": {"html": "https://wpnews.pro/news/bloomberg-us-leveraged-loan-index-sees-prices-fall-in-10-of-12-sessions-as", "markdown": "https://wpnews.pro/news/bloomberg-us-leveraged-loan-index-sees-prices-fall-in-10-of-12-sessions-as.md", "text": "https://wpnews.pro/news/bloomberg-us-leveraged-loan-index-sees-prices-fall-in-10-of-12-sessions-as.txt", "jsonld": "https://wpnews.pro/news/bloomberg-us-leveraged-loan-index-sees-prices-fall-in-10-of-12-sessions-as.jsonld"}}