BDC Comparisons
Perpetual Non-Traded BDC Comparisons
Quarterly BDC Compendium Commentary
In this quarter’s Compendium, KBRA reviews the financial performance of our rated business development companies (BDCs) in a landscape characterized by ongoing competitive pressures, declining but still high base interest rates, and distribution yield preservation. Credit performance across KBRA’s rated BDC universe remained generally solid in 3Q25, although signs of late-cycle softening have begun to emerge. While most BDCs continued to report stable credit metrics, dispersion widened across platforms—reflecting idiosyncratic pressures and selective borrower underperformance. During the quarter, we had no changes in ratings or Outlooks for the KBRA-rated BDC universe. Looking forward into 2026, KBRA’s rating outlooks are generally stable for our rated BDCs.
The broader operating environment during the quarter was marked by tight spreads, renewed mergers and acquisitions (M&A) activity, and…