In a recent glossary of private equity credit terms circulating in the industry, ABS, the abbreviation for asset-backed securities, is dubbed “Anything But Software” — “anything goes, just don't touch the software.” Software companies, once the darling of the market, are being snubbed because artificial intelligence could completely disrupt their business models. Although a large number of financing activities have turned to support the boom in AI infrastructure construction, asset-heavy and traditional economy enterprises are also becoming more and more popular in the private equity credit market. Take American Rock Salt, for example, which mines and sells road salt and other sodium chloride products. Although its credit rating is junk, lenders are currently fiercely vying for this business.

In a recent glossary of private equity credit terms circulating in the industry, ABS, the abbreviation for asset-backed securities, is dubbed “Anything But Software” — “anything goes, just don't touch the software.” Software companies, once the darling of the market, are being snubbed because artificial intelligence could completely disrupt their business models. Although a large number of financing activities have turned to support the boom in AI infrastructure construction, asset-heavy and traditional economy enterprises are also becoming more and more popular in the private equity credit market. Take American Rock Salt, for example, which mines and sells road salt and other sodium chloride products. Although its credit rating is junk, lenders are currently fiercely vying for this business.