S&P BDC Index Hits Steepest Price-to-NAV Discount Since 2020 as Credit Losses Rise
Updated
Updated · Bloomberg · May 16
S&P BDC Index Hits Steepest Price-to-NAV Discount Since 2020 as Credit Losses Rise
2 articles · Updated · Bloomberg · May 16
Publicly traded BDCs are sliding toward their deepest discounts to net asset value since the pandemic, a sharp repricing flagged by the S&P BDC Index.
Recent earnings from a string of listed BDCs showed why: credit losses are increasing, new lending is slowing and portfolio sizes are shrinking.
That pressure follows a wave of redemptions at several private BDC vehicles, underscoring how private credit’s push into retail money has left the sector more exposed to market swings.
The latest drop adds to a rough stretch for BDCs since late 2025, when tighter spreads had already been weighing on performance.
Are investors in high-yield BDCs now trapped as funds halt redemptions?
Is the private credit downturn a healthy reset or a preview of a larger financial crisis?
Will AI's disruption of software trigger a wave of defaults in private credit?