US BDCs Face Persistent Earnings Pressure and Asset Quality Risks Click here to learn more. U.S. business development companies (BDCs) face increasing pressure in 2026 as slower capital inflows and elevated redemptions weaken liquidity, while competitive underwriting and interest rates weigh on asset quality and earnings…. Subscribe to Read MoreAlready a member? Log in here...
US Software Credit Opinions Vulnerable to EBITDA Stress; US MM CLOs Resilient Click here to learn more. Software Issuers in Credit Opinion Portfolio More Vulnerable to EBITDA Stress Technology software issuers in Fitch’s model-based credit opinion (MCO) portfolio were more vulnerable to credit deterioration under a severe earnings stress than issuers in the portfolio excluding…
US Software Credit Opinions Vulnerable to EBITDA Stress; US MM CLOs Resilient Click here to learn more. U.S. technology software sector issuers in Fitch Ratings’ model-based, point-in-time credit opinion (MCO) portfolio are more vulnerable to credit deterioration under a severe earnings stress scenario compared with the portfolio excluding the technology software sector…. Subscribe to Read
US Private Credit Transparency Improves Amid Interconnectedness Risks Click here to learn more. In recent years, bank and insurance regulators have pushed for more private credit disclosure in response to emerging risks. For life insurers, potential risks include meaningful investment exposure, capital adequacy for privately rated investments and potential conflicts of interest associated with growing…
US Private Credit Transparency Improves Amid Interconnectedness Risks Click here to learn more. Transparency around private credit in North America is modestly increasing, according to Fitch Ratings. Stronger regulatory disclosure requirements, the rise of SEC-registered vehicles and individual issuer efforts to respond to market concerns are driving this change. However, most private credit information remains…
Software Deferrable Exposure Rising in U.S. Middle Market CLOs Click here to learn more. Technology-software assets in deferrable asset exposure are increasing within U.S. middle market (MM) collateralized loan obligations (CLOs) under Fitch’s surveillance. Selected indentures have also evolved their definitions of “Deferrable Obligation”. These trends drive elevated aggregate deferrable exposure in MM CLOs…. Subscribe
US Private Credit Defaults Hit New Highs but Losses Remain Contained Click here to learn more. At 9.2%, the default rate within Fitch’s privately monitored ratings (PMR) portfolio exceeded the default rate recorded for Fitch’s broadly syndicated loan (BSL) universe which reached 4.5% for the year. Fitch continues to believe the default rate in the…
US Private Credit Defaults Hit New Highs but Losses Remain Contained Click here to learn more. The default rate in Fitch Ratings’ privately monitored ratings (PMR) portfolio hit 9.2% in 2025, a new high, up significantly from 8.1% in 2024. Defaults were not concentrated in any particular sector, though Fitch recorded four defaults in the…
AI Disruption Puts Alt-Investment Manager Software Exposures in Focus Click here to learn more. Sharp declines in major software company valuations amid rising investor concerns about AI-driven disruption have raised questions about lenders’ and asset managers’ sector exposure. While direct lenders, including business development companies (BDCs), typically have sizable software exposures, Fitch-rated alternative investment managers…
Perpetually Non-Traded US BDCs See Higher Redemptions, Slower Fundraising Click here to learn more. Investor sentiment has turned negative toward publicly listed U.S. business development companies (BDCs) with private-credit and software exposure, lowering valuations and limiting equity market access. That shift is now spilling over to perpetually non-traded BDCs, which have seen higher redemptions and…