BDC credit stress climbs; software names add pressure
Private credit is grinding through a rough patch in the cycle, featuring lower base rates, heavy reliance on PIK income, and an approaching maturity wall. The mood has darkened to match. For a second straight quarter, survey respondents named a negative perception of the asset class as its top challenge, ahead of credit stress. Second-quarter BDC filings are expected to show more quiet restructurings and exits of troubled positions. The data backs up the unease. Stress is climbing both in borrow
BDC credit stress is rising, with 538 companies, or 10.6% of those held by BDCs, showing signs of pressure as of March. Software names account for over 25% of companies under pressure. The volume of stressed first-lien TL and unitranche investments increased 44% to $35.4 billion in the first quarter.
Summarised by netranta from Yahoo Finance. Open the original for the full story.
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