Keep pulling the thread on Bloomberg Businessweek Weekend.
Private credit funds have recently experienced a surge in redemption requests and have subsequently limited investor withdrawals.
DoubleLine CEO Jeff Gundlach believes that current conditions in the private credit market are similar to those seen in 2007, highlighting significant risks.
A private credit fund from a reputable sponsor was marked down 19% overnight, from a value of 100 to 81.
For the first time in 10 to 15 years, Business Development Companies (BDCs) have reported negative Return on Equity (ROE) for a quarter.
U.S. inflation accelerated in April 2025, driven by rising gasoline and grocery costs.
The acceleration of U.S. inflation in April 2025 has lowered the probability of an interest rate cut later in the year.
The new head of the U.S. Securities and Exchange Commission's Enforcement Division stated that monitoring stress in private markets is a top priority.
The negative ROEs reported by some BDCs were caused by their Net Asset Values being written down to reflect the mark-to-market of their software loans.
Software loans, which represent 20% to 30% of some private credit portfolios, still have significant downside risk.
SLR Capital Partners' stock recently fell to a 4-year low, its largest drop since March 2020.
In the most recent quarter, SLR Capital Partners' Net Asset Value declined by 50 basis points, outperforming peers whose NAVs fell by 200 to 1000 basis points.
SLR Capital Partners reported a 7% Return on Equity for the quarter, making it one of only four or five public BDCs with a positive ROE.