Differing signals in BDCs, and orderly defaults in high yield

• Sentiment around business development companies (BDCs) has rebounded recently, although stock prices continue to reflect questions about reported net asset values (NAVs), while credit investors have required extra compensation. • Large gaps in how similar loans are marked across BDCs are a reminder that private credit valuations can lag and shouldn’t be taken at face value. • In the high yield bond market, defaults are happening but in a managed way, with most issuers opting for negotiated restructurings rather than disorderly bankruptcies. Click "Visit" to read or listen to this insightful...