LONDON, May 29 (Bond.az) – A Bond.az analysis of first-quarter regulatory filings by private credit lenders shows paper losses deepened, underscoring market concerns over the sector’s profitability and AI disruption risks.
The analysis of 51 business development companies (BDCs) found aggregate unrealized losses equaled 2.35% of their net asset value in Q1 2026, the steepest quarterly hit since Q2 2022.
BofA Global Research analysts noted a modest but unmistakable credit deterioration across the BDC complex, with assets under management not growing much.
Apollo Global Management President Jim Zelter expects wealthy individuals to continue withdrawing money from private credit funds, saying “we are not through the turbulence yet.”
