Market Leader in Private Credit

In this quarter’s Compendium, KBRA reviews the financial performance of KBRA-rated BDCs in a competitive environment characterized by tighter spreads, elevated repayment activity in the upper middle market—driven by strength in the broadly syndicated loan (BSL) market—solid but slowing capital formation, and a modest pickup in mergers and acquisitions (M&A) activity.

President Donald Trump on August 7 signed an executive order to potentially ease regulatory barriers that have limited defined contribution (DC) retirement plans’ access to alternative investments—a move that could allow millions of retirement savers to invest in an expansive list of such assets

Private credit may well be in a “Waiting for Godot” moment—marked by growing anticipation of some unknown reckoning that continues to be deferred. As the industry continues to adapt to various market uncertainties, KBRA notes signs of improving credit quality for some borrowers, while still observing a subset of borrowers …

Once considered a niche market, private credit securitizations1 have become a core element of the structured finance (SF) landscape, particularly within the asset-backed securities (ABS) and structured credit (SC) sectors. Since 2022, approximately 20% of all KBRA-rated SF transactions have been privately placed. The shar…

Given private credit’s rapid growth, coupled with an economy potentially on the verge of a credit cycle, the increased attention and scrutiny on the industry is warranted. However, KBRA notes that some of the press coverage and market research regarding private credit is often ungrounded in data or lacking a nuanced unders…

Amid ongoing trade tensions, tariffs, market volatility, and a possible economic slowdown, KBRA views alternative asset managers—particularly those geared toward private equity (PE) and private credit (PC)—as more resilient on average than other types of financial institutions.