Group 1 - The current leverage in the market, particularly in private equity and private credit, is a significant concern for future risks [1] - The software sector has been notably affected by leverage, with 17% of Blue Owl Capital's loan book allocated to this sector, which is trading at a 170% premium to the S&P 500 despite recent corrections [2] - There are growing concerns about the Asian market, particularly in Korea and Taiwan, as it has become nonlinear recently [3] Group 2 - The halt on redemptions at Blue Owl Capital's retail credit fund may signal potential risks, drawing parallels to events leading up to the 2008 financial crisis [4] - Historical parallels are noted with the collapse of New Century Financial in April 2007 and subsequent fund closures by BNP, leading to the failures of Lehman Brothers and Bear Stearns [5] - The ongoing capex boom in AI among US mega-cap tech companies raises questions about the return on investment, with potential implications for the supply chain in Asia if there is a moderation in spending [6]

Mathieu Chabran, Co-Founder of Tikehau Capital, weighs in on mounting private credit fears as warnings of rising defaults and AI-driven disruption rattle investors. He speaks with Bloomberg's Dani Burger and Matt Miller on Open Interest. ...

Financial Data and Key Metrics Changes - SLRC reported net investment income (NII) of $0.40 per share and net income of $0.46 per share for Q4 2025, with NII remaining flat quarter-over-quarter [7] - Net assets value per share increased to $18.26 as of December 31, 2025, up from $18.21 at the end of Q3 2025 and $18.20 at the end of Q4 2024 [16] - For the full year 2025, SLRC generated net income of $1.70 per share, representing a 9.3% return on average equity [7] Business Line Data and Key Metrics Changes - In Q4 2025, SLRC originated $462 million in new investments, with repayments of $445 million, resulting in net fundings of $70 million and a year-end comprehensive portfolio of $3.3 billion, reflecting a 7.2% annual growth [8] - Asset-based lending (ABL) originations for Q4 were $247 million, nearly double the prior year period, with full-year ABL originations totaling $1.1 billion [11] - The portfolio consisted of approximately 98% senior secured loans, with 95% in first lien loans, and the weighted average yield on the portfolio was 11.6%, down from 12.2% in Q3 2025 [21][22] Market Data and Key Metrics Changes - SLRC's exposure to the software industry was approximately 2% as of December 31, 2025, one of the lowest among publicly traded BDCs, providing a safe haven from technology obsolescence risks [9] - The company reported a weighted average investment risk rating of under two, with 100% of the portfolio performing and no investments on non-accrual [23][14] Company Strategy and Development Direction - The company is shifting its portfolio towards specialty finance strategies due to their more attractive risk-adjusted returns and is focused on downside protection [20] - SLRC's multi-strategy approach to private credit investing allows for diversification and disciplined investment, enabling the company to pass on opportunities that do not meet conservative lending standards [6][10] - The company aims to maintain a strong liquidity profile to capitalize on market dislocations while adhering to its conservative investment philosophy [15][42] Management's Comments on Operating Environment and Future Outlook - Management noted a surprisingly resilient U.S. economy in 2025, despite various uncertainties, and expressed confidence in SLRC's insulation from risks faced by peers due to strict underwriting standards [5][4] - The company anticipates continued opportunities in the ABL market and is prepared to be opportunistic in cash flow lending as market conditions evolve [56][58] - Management emphasized the importance of protecting capital and avoiding losses while maintaining dividend coverage [41][42] Other Important Information - SLRC's investment portfolio had a fair value of approximately $2.1 billion across 100 portfolio companies, funded by a mix of revolving credit facilities and term debt [16][17] - The company has over $850 million of available capital to deploy, enhancing its ability to take advantage of market opportunities [14] Q&A Session Summary Question: Update on pipeline within ABL and equipment finance - Management is actively engaged in potential acquisitions and has a number of opportunities in the pipeline, though nothing imminent [46][47] Question: Impact of tight spreads in public debt markets on ABL and equipment finance - While overall returns have slightly decreased, the company maintains competitive spreads due to structural protections and disciplined peer behavior [48] Question: Signs of concern in credit metrics - Management reported no significant themes of concern, with a watch list of roughly 2% and ongoing monitoring of borrower performance [49][50] Question: Expectations for leverage and opportunistic investments - Management indicated a desire to increase leverage in response to attractive opportunities while remaining focused on repayments [55][56] Question: Sentiment on M&A opportunities in ABL - Management believes dislocation in the market may lead to more opportunities at better pricing [62]

SLR Investment (NasdaqGS:SLRC) Q4 2025 Earnings call February 25, 2026 10:00 AM ET Speaker4Please note this call is being recorded. It is now my pleasure to turn the meeting over to Mr. Michael Gross, Chairman and Co-CEO. Please go ahead, sir.Speaker3Thank you very much, and good morning. Welcome to SLR Investment Corp.'s earnings call for the quarter and year-ended December 31st, 2025. I'm joined today by my long-term partner, Bruce Spohler, our Co-Chief Executive Officer, as well as our Chief Financial Of ...

UBS strategists say that private credit default rates could surge 15% if it triggers an aggressive disruption among corporate borrowers. That follows blue limits, new blue outs, new limits for retail investors in one of its private credit, BDCs. And a report from Citron Research that says I could lead to a double digit U.S. unemployment rate by 2025 and also discuss fears in private credit.Let's discuss with Bloomberg senior reporter Silas Brown. So I, I got to say, it feels like we've hit a fever pitch of ...

Financial Data and Key Metrics Changes - BXSL reported a net investment income (NII) of $0.80 per share, representing an 11.8% annualized return on equity, primarily from interest income [7] - The distribution of $0.77 per share was 104% covered by NII, yielding an 11.4% annualized distribution yield on NAV [7] - The net return for the year was 9.6%, outperforming the leveraged loan market by 360 basis points [7] - The net asset value (NAV) per share decreased to $26.92 from $27.15 in the previous quarter, impacted by net unrealized losses [20][21] Business Line Data and Key Metrics Changes - BXSL's portfolio increased to 316 companies across 40 industries, with 13 new credits funded and 15 add-ons completed [8] - The average loan-to-value (LTV) at underwriting was 41%, with an average spread near 500 basis points [8] - Non-accruals in the fourth quarter were 0.6% at cost and 0.5% at fair market value, up from 0.3% and 0.2% respectively in the previous year [22] Market Data and Key Metrics Changes - The U.S. leveraged finance market is approximately $5 trillion, with the institutional non-BDC channel being about $1.5 trillion [30] - BXSL's board approved a discretionary share repurchase plan for up to $250 million, indicating confidence in the market despite trading below NAV [24] Company Strategy and Development Direction - The company is focused on capitalizing on the AI and digital infrastructure investment cycle, which is expected to support growth across multiple sectors [6] - BXSL aims to maintain a defensive investment strategy by focusing on first lien, larger, private equity-owned businesses [17] - The company is exploring various capital allocation options, including new loans, share buybacks, and deleveraging [35][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the economic backdrop, citing resilient corporate earnings growth and strong consumer demand [5] - The company anticipates continued robust capital inflows into private credit strategies, particularly from institutional channels [6] - Management noted that the credit quality of deals remains stable, with no significant signs of spread widening [41] Other Important Information - BXSL's total portfolio investments at fair value were over $14.2 billion, with outstanding debt of $8.1 billion [20] - The company has a diverse liability profile, with an all-in cost of debt for the fourth quarter at 4.93%, down from 5.24% [26] Q&A Session Summary Question: Impact of potential slowdown in non-traded channel - Management acknowledged the importance of institutional capital and expressed confidence in remaining active in the market despite potential headwinds [30][32] Question: Considerations for share repurchase versus new investments - Management indicated that they are evaluating all options, including share buybacks and new loans, based on market conditions and liquidity [35][54] Question: Recovery rates for software companies - Management stated that software businesses in their portfolio are performing well, with strong coverage despite public market markdowns [61] Question: Strategic decisions in a discount environment - Management emphasized a preference for new primary loans over secondary market purchases, focusing on deep underwriting processes [84]

Blackstone Secured Lending Fund (NYSE:BXSL) Q4 2025 Earnings call February 25, 2026 09:30 AM ET Company ParticipantsBrad Marshall - Global Head of Private Credit Strategies, Chairman, and Co-CEOEthan Kay - VP of Equity ResearchKenneth Lee - VPRobert Dodd - Director of Specialty FinanceStacy Wang - Managing Director and Head of Stakeholder RelationsTeddy Desloge - Senior Managing DirectorConference Call ParticipantsAaren Cyganovich - Senior Analyst of Specialty FinanceDoug Carter - AnalystFinian O'Shea - Dir ...

Financial Data and Key Metrics Changes - BXSL reported a net investment income (NII) of $0.80 per share, representing an 11.8% annualized return on equity, primarily from interest income [6][18] - The distribution of $0.77 per share was 104% covered by NII, yielding an 11.4% annualized distribution yield on NAV [6][18] - The net return for the year was 9.6%, outperforming the leveraged loan market by 360 basis points [6] - Net asset value (NAV) per share decreased to $26.92 from $27.15 in the previous quarter, impacted by net unrealized losses [19][25] Business Line Data and Key Metrics Changes - BXSL's portfolio increased to 316 companies across 40 industries, with 13 new credits funded and 15 add-ons completed [7][10] - The average loan-to-value (LTV) at underwriting was 41%, with an average spread near 500 basis points [7] - Non-accruals rose to 0.6% at cost and 0.5% at fair market value, up from 0.3% and 0.2% respectively in the previous year [20] Market Data and Key Metrics Changes - The U.S. leveraged finance market is approximately $5 trillion, with private credit in the institutional non-BDC channel around $1.5 trillion [29] - BXSL's credit business totals $520 billion, with investments in about 5,000 companies globally [30] Company Strategy and Development Direction - The company is focused on capital expenditure build-out in AI and digital infrastructure, which is expected to support growth across multiple sectors [5] - BXSL aims to maintain a defensive investment strategy by focusing on first lien, larger, private equity-owned businesses [16] - The company is actively evaluating capital allocation decisions between new opportunities and share repurchases [23][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a fundamentally healthy economic backdrop, with resilient corporate earnings growth and strong consumer demand [4] - The company anticipates continued robust capital inflows into private credit strategies, particularly from institutional channels [5] - Management noted that the credit quality of deals remains stable, with high single-digit EBITDA growth across the portfolio [20][68] Other Important Information - BXSL's board approved a discretionary share repurchase plan for up to $250 million of outstanding common shares [23] - The company has $2.5 billion in total liquidity, including unrestricted cash and undrawn debt [25] Q&A Session Summary Question: Impact of potential slowdown in non-traded channel - Management indicated that the U.S. leveraged finance market remains institutional-driven, and they expect to remain active in corporate lending despite potential headwinds [29][32] Question: Consideration of share repurchase versus special dividends - Management highlighted that they have options to reinvest in new loans, buy back shares, or deleverage, with a focus on maximizing returns for investors [34] Question: Sponsor conversations and market activity - Management noted that sponsors are cautious and observing market conditions before bringing assets to market, but they expect continued M&A activity due to economic growth [48] Question: Recovery rates for software companies - Management expressed confidence in the coverage of their software business, noting that it is performing well despite public market re-ratings [60] Question: Evaluation of share repurchase program - Management stated they will be opportunistic with share repurchases, considering the discount to NAV and the potential for capital allocation decisions [63]

The surge of insurance capital into private markets is boosting hiring and pay deals in the sector despite recent jitters, with senior managing directors asking for pay packets of $2.5 million and above.Those are some of the findings in the latest credit industry recruitment report from RCQ Associates, which said that mandates for professionals experienced in asset-backed financing jumped almost 60% in 2025 from a year earlier. For top staff with in-demand skills, the base salary and bonus packages are bein ...

Private-Credit BDC Market Offers a Choice: Cheap Public Funds or Richer Private Ones - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# Private-Credit BDC Market Offers a Choice: Cheap Public Funds or Richer Private OnesBy [Andrew Bary]ShareRe ...