Leveraged Loan Insight & Analysis – 6/20/2023

BDC portfolio marks expected to move moderately lower

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BDC portfolio companies are being closely monitored to gauge stress as a result of the higher interest rate environment, the degree of pressure on margins and declining interest coverage ratios for over-levered borrowers. The most recent, indicative data available does not show any significant deterioration yet although there are indications of softness in some select industries.