U.S. bank disclosures regarding private credit exposures improved in the first quarter of 2026, although inconsistencies relative to regulatory reporting remain an area for improvement, according to Fitch Ratings. Several large banks provided additional detail on lending to business development companies (BDCs), collateralized loan obligations (CLOs), and other direct lending vehicles. They also provided more context regarding underwriting approaches and historical loss experience.
As of March 31, 2026, there were notable differences between banks’ self-reported private credit balances and the regulatory reporting category for BCIs. Most bank-disclosed figures were well below regulatory call report data. For example, Wells Fargo reported $36 billion of corporate debt finance loans, well below its regulatory reported figure of $71 billion. Conversely, JPM disclosed “about $50 billion” of private credit exposure, compared to $37 billion in loans and unfunded commitments at prior quarter-end.
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Fitch Ratings Completes Peer Review of 13 US BDCs
Fitch Ratings has completed a peer review of 13 U.S. business development companies (BDCs). We have affirmed the Long-Term Issuer Default Ratings (IDRs) on 12 issuers and completed one Review No Action. The Rating Outlooks are Negative for three BDCs and Stable for 10 BDCs in this peer group.
Sponsored middle market leverage falls to its lowest level since 1Q23
Total leverage on sponsored middle market transactions declined to 4.40x in 2Q26 from 4.51x in 1Q26, reaching its lowest level…
Business of Private Credit: Playing to Your Strengths
“Show me a great credit, and I’ll show you a great sponsor behind it.”
For this series, we’ve focused on how core middle market lenders underwrite borrower. But before the lender ever sees the deal, a sponsor has already spent months, sometimes years, evaluating whether this was a company worth owning.