More than 400,000 BKLN put options were bought in just three weeks. That equals about 40 million shares. This is the highest bearish positioning since 2023. The Invesco Senior Loan ETF (BKLN) trades near $20. Software exposure is about 18%. Investors fear rising software credit risk and stress in the leveraged loan market. Nearly $1 billion has left the ETF in four weeks. Credit spreads are sensitive to rates and growth. If defaults rise, BKLN could fall further. If conditions stabilize, this crowded trade may unwind fast. Credit markets now lead the signal.