Weekly Market Summary

Extra Credit^*

• A growing volume of private credit loans is being put up for sale in the secondary market, largely driven by elevated redemption pressure in BDCs and the need for managers to raise liquidity. However, this surge in supply has not translated into a meaningful increase in trading activity, as demand remains limited and secondary market liquidity is still thin. With most loans offered at or near par, investor interest has been muted.
• Major banks including Goldman Sachs, Morgan Stanley, JPMorgan, and Jefferies are stepping in to help facilitate secondary trading in private credit, circulating lists of loans that originating lenders are looking to sell. These offerings are often packaged as portfolios, though in some cases individual positions are also being marketed. Rather than quoting firm bid/ask spreads, banks are typically soliciting bids, gauging what market participants would pay for the loans, similar to a bid wanted in competition (BWIC) list.
• Some private equity sponsors are wary of increased secondary trading, as new lenders entering a credit can shift the dynamic between sponsors and creditor groups, particularly if the incoming investors are viewed as less cooperative. The impact often depends on the buyer’s reputation and existing relationship with the sponsor. While sponsors typically establish “DQ” (disqualified lender) lists at deal inception to block certain investors, their ability to prevent trades is limited. If a buyer is not explicitly restricted under the loan documentation, sponsors may have little formal control over secondary transactions.

Reuters and Pitchbook as of 4/1/2026. BDCs (Business development companies) are a type of closed-end investment fund that invests in small- and mid-sized private companies, or distressed public firms. Created by Congress, they enable retail investors to access private credit/equity markets and typically offer high dividend yields by financing business growth.