August argues default rates won't spike; Khosla argues "tail risk is fact" and software credit (a large chunk of private credit) is vulnerable. A significant portion of private credit and direct lending is exposed to software companies bought at 20x+ multiples. If AI disrupts those business models (as seen with CRM/SNOW), the credit backing them becomes toxic. Watch Private Credit closely; avoid exposure to funds heavily allocated to legacy software LBOs. If the "soft landing" persists, credit spreads may remain tight, punishing those who sit out.