US Private Credit Firms Mark Down Select Loans
US private credit portfolio values stabilized in the second quarter following early year declines. However, lenders marked down select software loans and reported rising nonaccrual debt.
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United States private-credit portfolio values slipped further below cost in the second quarter as software loan markdowns and non-accrual debt rose, according to a Reuters analysis of regulatory filings. The aggregate fair-value-to-cost ratio fell to 97.57% at the end of June, down from 97.77% in the first quarter. The contraction follows increased investor scrutiny over opaque valuations and tighter market spreads across small- and medium-sized enterprise lending.
