Cause for alarm? Buying opportunity? It might be a little of both in the world of business development companies (BDCs).
We're seeing some turmoil in private credit, including rising redemptions amid questions about valuations after a period of rapid growth. It's now a massive $3 trillion market, where nonbank lenders make loans to midsize companies a little too big to borrow from banks but a little too small to access the public bond market. Investors are wondering what might be lurking on BDC balance sheets.
