BDC loan valuations shift lower in recent filings

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The fair value of BDC debt investments declined in 2Q22, driven by credit spread widening across the broader markets as volatility spiked against a backdrop of inflationary pressures and recession fears. Looking at the cohort of 56 BDCs that have posted earnings as of August 10, the weighted average mark on debt holdings finished 2Q22 at 96.54, down from 97.80 in 1Q22.