Bond Dealers Push Up Private Credit Fund Trading Costs Amid Software Slide

Wall Street dealers are demanding higher compensation to trade corporate bonds issued by private credit funds, as investors turn squeamish about the funds’ exposure to software firms facing artificial intelligence disruption.

Loans tied to software businesses make up about 20% of the portfolios held across these funds, known as business development companies, Barclays Plc strategists wrote on Friday. Many BDCs are listed on major exchanges, where their shares have dropped about 3% this month amid fresh worries about this exposure.