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Defaults and Deferring Marginally Down
Fifteen CLOs had exposure to at least one defaulted or deferring issuer at the end of August 2024. Average defaulted and deferring exposure across middle market (MM) CLOs decreased to 0.5%, 10 basis points (bps) lower compared to last month. In August, two new defaulted or deferring issuers were reported. This was balanced by the removal of five prior defaults held in deals that were redeemed or reset. Additionally, one issuer was no longer reported as defaulted and two defaulted issuers were sold from the portfolio.
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.