Capital Group Spies High-Yield Software Opportunity in Debt Meltdown
From The Credit Edge by Bloomberg Intelligence by Bloomberg
March 5, 2026 · 48 min
About this episode
The episode discusses high-yield debt opportunities amid fears of software defaults due to AI disruption, featuring insights from Capital Group's Shannon Ward.
Fear of software defaults amid AI disruption creates opportunity for high-yield debt buyers, according to Capital Group, which has $3.2 trillion under management. “Markets are adopting a bit of a shoot first ask questions later strategy when it comes to software,” said Shannon Ward, a fixed income portfolio manager who serves on the firm’s fixed income management committee. “There’s going to be some baby out with the bath water when it comes to the sector — and that means bargains can be had,” she tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Steve Flynn in this episode of the Credit Edge podcast. They also discuss how Paramount Skydance will reshape junk credit, leveraged loan default risks and the broader impact of private market stress. See omnystudio.com/listener for privacy information.
People in this episode
Hosts: James Crombie, Steve Flynn
Guest: Shannon Ward
Topics covered
- high-yield debt
- software defaults
- AI disruption
- junk credit
- leveraged loan default risks
- private market stress
Keywords
- high-yield debt
- software defaults
- AI disruption
- Capital Group
- junk credit
- leveraged loans
- private market stress
Mentioned in this episode
Organizations: Capital Group, Bloomberg News, Bloomberg Intelligence, Paramount Skydance
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