00:00A group of banks led by J.P. Morgan halted a $5.3 billion debt deal for software firm Qualtrics
00:06International. That's after Qualtrics failed to win over investors as deepening anxiety
00:11surrounding AI disruption persists. Bloomberg News reporter Aaron Weinman has been covering
00:16this story and joins us now. Aaron, this AI anxiety is prevalent in public markets
00:22and clearly in loans as well. Just how much is it stymieing deal activity?
00:26So I think it's a tale of sort of haves and have nots. In the case of Qualtrics, J.P.
00:32Morgan
00:33and a group of banks attempted to engage with investors last month and basically what's
00:39happened now is investors really like EA. So EA is the focus right now and it's a lot larger
00:44but Qualtrics is expected to sort of come back into the vision of investors in a few weeks
00:49time. So they've effectively put it on the back burner because Qualtrics' existing loan
00:55in the secondary market has been taking a hit.
00:57But did they also change the dynamics of the EA debt deal too?
01:00They did, yes. They did. So what they've done with the EA debt deal is they've shifted the
01:06bonds and loans portion. So initially the talk was that it was going to be more loans but
01:11now there's quite a large bond portion. To your earlier point about software, what you've
01:17seen is that there's about 15% to 17% of software related credits in the leveraged loan market
01:24and that's sort of been bringing the index down. Qualtrics has been hit by that and so that
01:29is why there is effectively a move by the banks to delay that and come back in a few weeks
01:35time
01:35and re-engage with investors and I guess the hope would be to launch the deal at that time.
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