Story perspectives

Private Credit Markets Shift Amid Rising Borrower Competition

11/6/2025

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Summary

Story summary

Private credit markets shift as bank-led liquid debt markets regain post-pandemic activity, prompting investors to abandon listed vehicles amid loan-market concerns.
As a result, the Cliffwater BDC index yields 10.8% as of late October while trading at an 8.1% discount to asset value, signaling an earnings slowdown.
Defaults remain low, but stress appears as Payment-in-Kind income rises.
Borrowers seek cheaper options in public markets as lender competition intensifies.

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Story summary

Private credit markets shift as bank-led liquid debt markets regain post-pandemic activity, prompting investors to abandon listed vehicles amid loan-market concerns.
As a result, the Cliffwater BDC index yields 10.8% as of late October while trading at an 8.1% discount to asset value, signaling an earnings slowdown.
Defaults remain low, but stress appears as Payment-in-Kind income rises.
Borrowers seek cheaper options in public markets as lender competition intensifies.