Cheap-money PE playbook is unraveling
Many see the debt wall as the predictable result of buying niche companies with cheap leverage, raising prices, and now facing refinancing at much higher rates with few buyers.
AI hyperscaler debt crowds out credit
Massive Mag7 bond issuance is soaking up credit demand, forcing middle-market borrowers to pay higher spreads just as 2021 loans mature.
AI erodes SaaS moats and valuations
LLMs make niche software easier to replicate, undermining PE-owned SaaS pricing power and asset values, though others argue SaaS buyers pay for ops, liability and domain expertise rather than features.