BDC newly originated second lien exposure climbs in 2Q21

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BDC’s increased their second lien exposure to 12.1% of new originations in 2Q21, up from the 7.5% tracked in 1Q21. In comparison, first lien assets were relatively flat at 71.6% of originations, while equity positions slipped to 10%.
 
At the fund level, second lien originations as a share of overall originations varied widely across BDC’s, ranging from 0% to over 40% of assets originated in 2Q21.