BALANCEDIn depth · 4/5

Software sector defaults manageable for lenders

The guest argued that while the software sector faces a transition due to AI, senior lenders are in a different, more protected position than equity and are paid for yield, not terminal value growth.

Michael Kitceson Animal Spirits

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The story so far

CONTESTED · 147 MENTIONS · 87 EPISODES · 31 SHOWS

24 JUL 2025 — 16 AUG 2026 · 2D AGO

79 SUPPORT · 33 CHALLENGE · 2 REPEAT · 33 MENTIONED

24 JUL 2025 · FIRST HEARD
THE ACQUIRERS PODCAST
- Private equity faces tricky exit environment
14 EPISODES BETWEEN · 20 MENTIONS · 27 NOT KEPT
1. 27 EPISODES NOT SHOWN
2. 10 FEB 2026
  THE INSIGHT BY OAKTREE CAPITAL · 3 MENTIONS
3. 10 FEB 2026
  THE LONG VIEW
  - Credit cracks likely in private, not public, markets
4. 11 FEB 2026
  ANIMAL SPIRITS · 2 MENTIONS
  - Private credit exposed to software downturn
  - Blackstone a screaming buy amid overreaction · CHALLENGES
5. 17 FEB 2026
  THE JULIA LA ROCHE SHOW
  - Private equity and credit overpaying for assets
6. 25 FEB 2026
  THE COMPOUND AND FRIENDS · 2 MENTIONS
  - Private credit faces a pre-crisis reckoning
  - Contrarian case for battered private equity · CHALLENGES
7. 25 FEB 2026
  ANIMAL SPIRITS
  - Private credit faces a crisis of confidence
8. 28 FEB 2026
  THE JULIA LA ROCHE SHOW
  - Private credit's taxpayer-subsidized funding
9. 4 MAR 2026
  THE COMPOUND AND FRIENDS · 2 MENTIONS
  - Private credit's 2022 windfall was unique
  - Private credit shakeout favors good risk managers · CHALLENGES
10. 4 MAR 2026
  ANIMAL SPIRITS
  - Private credit outflows crush PE firm stocks
11. 4 MAR 2026
  THE ALPHA EXCHANGE
  - Private credit's 'vol laundering' as a feature
12. 6 MAR 2026
  FORWARD GUIDANCE
  - Private credit as a source of hidden risk
13. 6 MAR 2026
  THE COMPOUND AND FRIENDS · 2 MENTIONS
  - Private credit sell-off not the next subprime · CHALLENGES
  - Private credit as the potential crisis epicenter
14. 7 MAR 2026
  THE POMP PODCAST
  - Run on private credit funds underway
15. 7 MAR 2026
  THE JULIA LA ROCHE SHOW
  - Annuity risk from private credit exposure
11 MAR 2026 · CHALLENGES
ANIMAL SPIRITS · 4 MENTIONS
- Private credit not in a bubble
- Software sector defaults manageable for lenders · THIS IDEA
- Evergreen fund liquidity management is key
- Private credit's 2008-2010 return dynamic
38 EPISODES BETWEEN · 61 MENTIONS
1. 16 MAR 2026
  REAL VISION DAILY BRIEFING
  - Private credit facing a reckoning on marks
2. 17 MAR 2026
  THE KNOWLEDGE PROJECT
  - Prudent, long-term, non-recourse financing strategy
3. 17 MAR 2026
  THE COMPOUND AND FRIENDS · 3 MENTIONS
  - Cliff Water at the center of private credit scrutiny
  - The worst loans are made in the best times
  - Private credit marks are all wrong
4. 18 MAR 2026
  THE POMP PODCAST
  - Private equity faces a 2025-26 refinancing reckoning
5. 19 MAR 2026 · CHALLENGES
  THE ACQUIRERS PODCAST
  - Private credit hysteria overblown versus reality
6. 19 MAR 2026
  EXCESS RETURNS · 2 MENTIONS
  - Private market marks are not real
  - Private credit collapse before private equity
7. 19 MAR 2026
  MACROVOICES
  - Private credit's opaque risk echoes subprime
8. 20 MAR 2026 · CHALLENGES
  BUSINESS BREAKDOWNS · 3 MENTIONS
  - Yield segment as Apollo's growth powerhouse
  - Private credit evolving beyond sponsor-backed LBOs
  - Biggest risk is return degradation, not systemic fallout
9. 20 MAR 2026
  THE COMPOUND AND FRIENDS
  - Private credit faces a fundraising chill
10. 23 MAR 2026 · CHALLENGES
  GOLDMAN SACHS EXCHANGES · 6 MENTIONS
  - Private credit's illiquidity premium
  - Private credit's software exposure: insulated by credit structure
  - Retail private credit outflows: contained, not systemic
  - Caution on software ARR loans
  - Institutional private credit: opportunity as spreads widen
  - Junior capital strategies to benefit from refinancing needs
11. 24 MAR 2026
  THE MEMO BY HOWARD MARKS · 2 MENTIONS
  - Private credit's evolution from niche to mainstream
  - Balanced multi-asset credit solutions over single products
12. 25 MAR 2026
  ANIMAL SPIRITS
  - Private credit problems are slow-moving, not catastrophic
13. 26 MAR 2026
  THE RATIONAL REMINDER PODCAST · 3 MENTIONS
  - Private equity's insurance captive risk loop
  - Market punishing private asset managers' stocks
  - Private markets' volatility laundering illusion
14. 26 MAR 2026
  EXCESS RETURNS · 3 MENTIONS
  - Private credit's multi-layered liquidity defenses · CHALLENGES
  - AI disruption risk in private credit software lending
  - Key due diligence pillars for private credit funds
15. 29 MAR 2026
  MONETARY MATTERS WITH JACK FARLEY · 2 MENTIONS
  - Private credit semi-liquid fund redemption caps
  - Private equity riskier than private credit
16. 30 MAR 2026
  CAPITAL ALLOCATORS · 4 MENTIONS
  - Private credit faces a redemption-driven liquidity crunch
  - CLO equity cheap on sector stress · CHALLENGES
  - Software (SaaS) sector is a key default risk
  - Drawdown funds as the best private credit structure
17. 31 MAR 2026
  THE JULIA LA ROCHE SHOW
  - Private credit as this cycle's subprime
18. 31 MAR 2026
  GOLDMAN SACHS EXCHANGES
  - Private credit as a knowledge-based extension of private equity
19. 31 MAR 2026
  THE ALPHA EXCHANGE
  - Private credit faces liquidity mismatch risk
20. 1 APR 2026
  ANIMAL SPIRITS
  - Private credit faces a liquidity reckoning
21. 3 APR 2026
  FORWARD GUIDANCE
  - Credit distress is a major underlying issue
22. 6 APR 2026
  ANIMAL SPIRITS
  - Private credit risks: illiquidity & software concentration
23. 6 APR 2026
  THE COMPOUND AND FRIENDS · 3 MENTIONS
  - Private credit valuations are manager-marked fiction
  - Software loans are the canary in the coal mine
  - The fuse leads to a $10T life insurance bomb
24. 8 APR 2026
  ANIMAL SPIRITS
  - Private credit fund redemption crisis
25. 8 APR 2026
  MONETARY MATTERS WITH JACK FARLEY · 3 MENTIONS
  - BDCs offer structural benefits for offshore capital
  - Corporate opportunistic credit: a 9/10 opportunity · CHALLENGES
  - Private credit is a leveraged asset class
26. 9 APR 2026
  THE MEMO BY HOWARD MARKS
  - Direct lending faces a credit cycle reckoning
27. 13 APR 2026
  FINTECH INSIDER PODCAST BY 11:FS
  - Private credit market's hidden risks
28. 18 APR 2026
  MONETARY MATTERS WITH JACK FARLEY
  - Regional banks more vulnerable to private credit losses
29. 21 APR 2026
  THE JULIA LA ROCHE SHOW
  - Systemic crisis brewing in sequestered capital
30. 21 APR 2026
  THOUGHTFUL MONEY
  - Private credit stress as a potential public market opportunity
31. 22 APR 2026
  GOLDMAN SACHS EXCHANGES
  - Private credit faces AI-driven disruption cycle
32. 24 APR 2026 · CHALLENGES
  THE BUSINESS BREW
  - Private credit sell-off on contained software risk
33. 22 JUL 2026 · 4W AGO
  EURODOLLAR UNIVERSITY
  - Private credit slowdown threatens debt refinancing cycles
34. 23 JUL 2026 · 4W AGO
  THE JULIA LA ROCHE SHOW
  - Credit distress threatens regional banks and auto debt
35. 26 JUL 2026 · 3W AGO
  THOUGHTFUL MONEY
  - Rising credit stress in private markets
36. 26 JUL 2026 · 3W AGO
  MOTLEY FOOL MONEY
  - Private credit carries structural subprime-like systemic risks
37. 31 JUL 2026 · 3W AGO
  ODD LOTS
  - Private credit valuations lack transparency for regulators
38. 5 AUG 2026 · 2W AGO
  CAPITAL ALLOCATORS
  - Private equity's next leverage-illiquidity test
7 AUG 2026 · 2W AGO
EURODOLLAR UNIVERSITY · 2 MENTIONS
- Credit cycle downturn raises stock market crash risk
- Private credit fraud reveals systemic underwriting failures
9 AUG 2026 · 1W AGO
EURODOLLAR UNIVERSITY
- Mortgage stress signals credit cycle downturn
11 AUG 2026 · 1W AGO
THE COMPOUND AND FRIENDS
- Private equity/credit blowup fears overblown
12 AUG 2026 · 6D AGO
EURODOLLAR UNIVERSITY
- Credit cycle stress appearing in financial plumbing
15 AUG 2026 · 3D AGO
THE JULIA LA ROCHE SHOW · 2 MENTIONS
- Private credit demise previewed by 777 Partners
- Insurance as private credit's balance sheet risk
16 AUG 2026 · 2D AGO
MONETARY MATTERS WITH JACK FARLEY
- Private label credit ratings risk

HOW THE SHOWS HAVE DISCUSSED THIS THESIS OVER TIME · NOT A PERFORMANCE RECORD