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Weekly Market Summary
June 15 to June 19, 2026
Extra Credit*
- Private perpetual Business Development Companies (BDCs) remain under redemption pressure, with 2Q26 outflow reporting now underway and set to accelerate over the coming weeks. According to Barclay’s Live, they expect net flows to worsen versus last quarter, reflecting a drop-in new investment activity across perpetual BDCs in April and May. These trends have raised investor concerns about the sustainability of equity fundraising at non-traded BDCs.
- Private REITs offer a useful comparison, given their similar reliance on retail capital and their own heavy redemption cycle from late 2022 through early 2024. Using BREIT and SREIT as case studies, equity analysts found that institutional investor support, asset-quality differences, and the ability to pivot were key factors behind divergent recoveries in private REIT net flows. This suggests many private BDCs may have tools available to manage through a redemption cycle, though outcomes are likely to vary meaningfully across platforms.
- The comparison is not perfect. Like private REITs, private BDCs raise equity through non-traded vehicles and invest in illiquid assets, while secular risks around software exposure in BDC portfolios may echo the office commercial real estate (CRE) challenges faced by REITs. However, CRE has a longer track record across economic and interest-rate cycles, whereas private credit remains less tested, which could leave investors more sensitive to shifts in sentiment.
Source: Barclay's Live as of 6/10/26.
Previous reports
*Source: Morningstar®, Bloomberg, Credit Suisse. OAS is Options Adjusted Spread. 4-year discount margin is used for spread for bank loans. Yield quoted is yield-to-worst or equivalent calculation. YTD Low / High for yields are based on end of week and not intraday movements. Indexes and sub-indexes: Investment-grade corporates represented by Bloomberg US Corporate Bond Index. High-yield bonds represented by Bloomberg US Corporate High Yield Index. Bank loans represented by Morningstar LSTA US leveraged Loan Index. The red and green arrows depicted under Yields, Option Adjusted Spreads, and Prices indicate a higher or lower value from the previous week.
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