Private Credit Stocks Signal More Pain Is Coming: Credit Weekly

Falling income, slashed dividends and loan markdowns: the results from some of the most transparent private credit funds this week have done little to soothe investors concerned about cockroaches in the market.

Shares in the funds, known as business development companies, broadly extended losses, and are now down more than 11.5% this year even including dividends. BlackRock TCP Capital Corp. closed at a record low on Friday. Carlyle Secured Lending Inc. fell to its lowest since the pandemic.