Barron’s recently examined the growing pressures facing private credit markets from rising financing costs and widening bond spreads to elevated redemptions across Business Development Companies (BDCs). With BDC bond yields climbing to an average of about 6.5% and public BDC share prices down 15% this year, the economics of leverage in private credit are shifting. Our CEO and Head of Investment Strategies, David Eichhorn, weighed in, noting that current bond spreads are making leverage less economic for BDCs.
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