BDC Weekly Review: Default Rate Estimates Are All Over The Place
A weekly review of business development companies for the fourth week of September notes BDC sector valuations have declined, with future yield on price rising alongside Fed rate hikes. It also highlights that default rates in private credit remain low (~1.5%), though amendment activity and lender-control events are increasing.
Why it matters — BDC watchers would care because lower valuations paired with rising yields and still-low payment default rates offer a mixed picture, offset by increasing amendment and lender-control activity.