BDCs Face New Headwinds but Limited Direct Exposure to Tariff Sectors Click here to learn more. The recent escalation in the global trade war and resulting uncertainty across the market introduced additional headwinds for business development companies (BDCs) and private credit in the near term…. Subscribe to Read MoreAlready a member? Log in here...
Fitch Ratings Completes Peer Review of 12 US BDCs Click here to learn more. Fitch Ratings has completed a peer review of U.S. business development companies (BDCs). We have affirmed the Long-Term Issuer Default Ratings (IDRs) on 11 issuers and completed one Review – No Action. The Rating Outlooks for Ares Capital Corporation and Sixth…
Inflows, Competition to Pressure Perpetual BDC Earnings, Asset Quality Click here to learn more. The elevated competitive underwriting environment for business development companies (BDCs) will persist in 2025 due to significant capital being raised, especially in perpetual, non-traded BDCs amid sluggish M&A activity. The difficult environment will negatively affect earnings and asset-quality metrics, while also…
Growth at Perpetual BDCs Drives an Increase in Competition Click here to learn more. U.S. perpetual non-traded business development companies (BDCs) have grown rapidly since the launch of Blackstone Private Credit Fund in January 2021…. Subscribe to Read MoreAlready a member? Log in here...
Tight Spreads, Rising Non-Accruals to Further Weaken BDC Earnings Click here to learn more. Continued spread pressure and additional non-accruals will likely weaken earnings and dividend coverage for business development companies (BDCs)…. Subscribe to Read MoreAlready a member? Log in here...
U.S. BSL & MM CLO Spotlight – February 2025 Click here to download report. At the end of February 2025, 20 CLOs had exposure to at least one defaulted or deferring issuer…. Subscribe to Read MoreAlready a member? Log in here...
Lender-Sponsor Dynamics Mark Default Outcomes for Private Credit Click here to learn more. Join Fitch Rating upcoming Webinar: The Highs and Lows of Private Credit Defaults and Recoveries The lender-sponsor partnership, a hallmark of the private credit segment, may result in a structurally higher default rate compared to the broader leveraged loan universe…. Subscribe to
US Private Credit Defaults Rose Sharply in 2024 While Lender Losses Remained Limited Click here to learn more. Join Fitch Rating upcoming Webinar: The Highs and Lows of Private Credit Defaults and Recoveries The default rate in Fitch Ratings’ portfolio of U.S. privately monitored ratings (PMR) rose sharply to 8.1% in 2024. This is the…
U.S. Banks’ Direct Exposure to Private Credit Growing; Poses Limited Risks for Now Click here to learn more. Private credit has expanded rapidly, but sizing the market is challenging given limited transparency. In its ‘Private Debt 2025’ report, Preqin sized the global private credit market at $1.6 trillion in AUM at year-end 2024 and projects…
U.S. Banks’ Direct Exposure to Private Credit Growing; Poses Limited Risks for Now Click here to learn more. Join Fitch for the upcoming webinar: Private Credit: Growing Interconnectedness and New Product Risks Recent regulatory data offers new insights into U.S. banks’ direct exposure to the private credit sector. As of Dec. 31, 2024, U.S. banks…