Daily Analytic: Services and healthcare sectors see most loans added to non-accrual status in 1Q24

The weighted average non-accrual rate for public and private BDCs combined ticked down to 1.39% in 1Q24 from 1.50% in the prior quarter. On the other hand, BDC net realized losses trended higher to around US$550m in 1Q24, up from US$164m in 4Q23. On a dollar level, a total of US$1.04bn of loans were added to non-accrual status in 1Q24. The sectors which saw the most loans placed on non-accrual in 1Q24 was services (US$229m), healthcare (US$139m), manufacturing (US$135m) and beverage, food & tobacco processing (US$134m).