Software Company Bonds Drop as Investors’ AI Worries Mount

Investors are souring on the bonds of software companies that service industries ranging from automotive to finance as fast-paced artificial intelligence innovations threaten to upend their business models.

Prices on Rackspace Technology Global Inc., McAfee, ION Platform Investment Group and CDK Global’s debt were tumbling this week. ION Platform’s euro-denominated bonds notched their steepest drop on record Wednesday, sending prices to the lowest since being issued in October, while the financial data and software company’s dollar notes due in 2032 lost as much as 4.25 cents on the dollar to trade around 87 cents, according to Bloomberg-compiled pricing.