Early in the second quarter, the institutional loan calendar stands at just over US$5bn, the lowest level in 5 years. Currently there are known 7 deals in market only two of which are M&A related and north of US$1bn in size. The balance represent refinancings and a small dividend recap. More noteworthy than the size of the pipeline, is the pace at which they are lining up to move/clear the retail syndicated loan market. Amid headlines spotlighting tariff wars and market uncertainty, a number of arrangers are slow walking deals in an effort to manage growing lender concerns around credit risk. A US$1.1bn term loan B backing HIG Capital’s acquisition of Converge Technology Solutions (one of the two M&A credits in the pipeline) has been postponed. So too has the US$525m TLB backing a dividend recap for ITG Communications. The near term postponement of these two deals alone brings the pipeline down even further to less than US$3.5bn.
Latest news
Q2'26 BDC analysis shows additional 184 bps of nonaccruals at cost
In a universe of 173 business development companies, or BDCs, Octus identified a total of $9.5 billion of debt (at cost) in nonaccrual status reported in the second quarter of 2026, a slight decline of 5% from $10 billion in the first quarter of 2026.
Reading the Board
The story changes depending on which numbers you’re counting.
Private Credit Defaults 101: Different Numbers, Different Stories
In Season 2 of Billions, Bobby Axelrod takes his lawyer Orrin Bach to an empty Yonkers racetrack in the dead of night.