Latest Market Alert | 3 July 2026
Executive Summary
Reuters analysis shows many publicly traded business development companies — a visible part of the private credit market — have turned unprofitable as asset values fall and borrowing costs rise.
Why it matters
Private credit has become a major source of corporate finance, but rising losses may affect appetite, pricing and lender behaviour.
UK impact
UK borrowers should expect closer scrutiny, tougher terms and greater focus on repayment visibility.
Global impact
Investors may become more selective, especially where leverage, valuation opacity or payment-in-kind income is high.
Our View
Well-prepared borrowers with strong governance, security and downside protection should stand out as weaker credits come under pressure.
Risk Indicator: MEDIUM/HIGH
Disclaimer
This market alert is provided for general information purposes only and does not constitute financial, legal, insurance or investment advice. Readers should obtain independent professional advice before making any commercial or investment decisions.