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High-yield software credit spreads have surged to approximately 355 basis points, up sharply from around 200 basis points just weeks ago.
Frank Chaparro reports that this represents one of the fastest repricings in the software sector since the credit stress episode of 2022. Credit markets are now demanding significantly higher risk premiums from leveraged software companies, signaling heightened market uncertainty.
Against this backdrop of mounting credit risk in leveraged software, the sector’s volatility draws parallels to the ambitious growth projections highlighted in OpenAI’s pursuit of a $280 billion revenue target by 2030. The current repricing also evokes recent market exposures, such as the substantial profits realized by select Polymarket wallets on U.S. strike bets, underscoring how swiftly market sentiment can realign in response to emerging risks and opportunities.