1 day ago
Private credit is entering a more challenging phase as non-accruals and other signs of borrower distress rise.
The industry has enjoyed years of strong growth, supported by expanding **** ets under management, robust investment activity and attractive returns for investors. But the credit cycle is turning. The latest LCD data suggest that rising borrower distress is becoming a more meaningful feature of the market.
In this report, LCD examines non-accrual exposure (see Footnote 1) across the BDC market, beginning with a quick update on Q2 figures from the ten largest publicly traded BDCs, followed by a comprehensive **** ysis of non-accrual exposure across all registered US-based BDCs over the past three years, covering 213 distinct BDCs managed by 109 managers, representing an aggregate debt portfolio of $516 billion as of Q1 2026.
Key Takeaways
Reported non-accrual debt rose to 1.9% of total debt at cost in Q1, up 52 bps from the prior quarter.
#accrual #borrower #distress #across
The industry has enjoyed years of strong growth, supported by expanding **** ets under management, robust investment activity and attractive returns for investors. But the credit cycle is turning. The latest LCD data suggest that rising borrower distress is becoming a more meaningful feature of the market.
In this report, LCD examines non-accrual exposure (see Footnote 1) across the BDC market, beginning with a quick update on Q2 figures from the ten largest publicly traded BDCs, followed by a comprehensive **** ysis of non-accrual exposure across all registered US-based BDCs over the past three years, covering 213 distinct BDCs managed by 109 managers, representing an aggregate debt portfolio of $516 billion as of Q1 2026.
Key Takeaways
Reported non-accrual debt rose to 1.9% of total debt at cost in Q1, up 52 bps from the prior quarter.
#accrual #borrower #distress #across
1 day ago
Private credit is entering a more challenging phase as non-accruals and other signs of borrower distress rise.
The industry has enjoyed years of strong growth, supported by expanding ***** ets under management, robust investment activity and attractive returns for investors. But the credit cycle is turning. The latest LCD data suggest that rising borrower distress is becoming a more meaningful feature of the market.
In this report, LCD examines non-accrual exposure (see Footnote 1) across the BDC market, beginning with a quick update on Q2 figures from the ten largest publicly traded BDCs, followed by a comprehensive ***** ysis of non-accrual exposure across all registered US-based BDCs over the past three years, covering 213 distinct BDCs managed by 109 managers, representing an aggregate debt portfolio of $516 billion as of Q1 2026.
Key Takeaways
Reported non-accrual debt rose to 1.9% of total debt at cost in Q1, up 52 bps from the prior quarter.
#borrower
The industry has enjoyed years of strong growth, supported by expanding ***** ets under management, robust investment activity and attractive returns for investors. But the credit cycle is turning. The latest LCD data suggest that rising borrower distress is becoming a more meaningful feature of the market.
In this report, LCD examines non-accrual exposure (see Footnote 1) across the BDC market, beginning with a quick update on Q2 figures from the ten largest publicly traded BDCs, followed by a comprehensive ***** ysis of non-accrual exposure across all registered US-based BDCs over the past three years, covering 213 distinct BDCs managed by 109 managers, representing an aggregate debt portfolio of $516 billion as of Q1 2026.
Key Takeaways
Reported non-accrual debt rose to 1.9% of total debt at cost in Q1, up 52 bps from the prior quarter.
#borrower
3 days ago
The US private credit market, valued at over $2 trillion, is flashing stress signals not seen since 2017, raising the question of what deteriorating loans could mean for Bitcoin.
The connection runs through liquidity and risk sentiment rather than any direct exposure between the two markets.
Non-accrual loans are credits in which the borrower has stopped making payments or in which default is likely. That metric just hit a multi-year high.
The Financial Times reported the figures, based on Solve data. Non-accrual loans reached a median of 2.8% of cost across the twenty largest listed US Business Development Companies during the second quarter.
That level compares with late March, when the same measure sat near 2%. It marks the highest reading in nearly a decade, comparable to stress triggered by the 2017 oil price collapse.
#accrual #financial
The connection runs through liquidity and risk sentiment rather than any direct exposure between the two markets.
Non-accrual loans are credits in which the borrower has stopped making payments or in which default is likely. That metric just hit a multi-year high.
The Financial Times reported the figures, based on Solve data. Non-accrual loans reached a median of 2.8% of cost across the twenty largest listed US Business Development Companies during the second quarter.
That level compares with late March, when the same measure sat near 2%. It marks the highest reading in nearly a decade, comparable to stress triggered by the 2017 oil price collapse.
#accrual #financial
7 days ago
Privia Health (NASDAQ:PRVA) just turned in a quarter that checked every box management set for itself, and then raised the bar again for the rest of the year. On the company's August 6 earnings call, CEO Parth Mehrotra and CFO David Mountcastle laid out a business adding doctors, patients, and cash at a pace that has held for nine straight years. The question is whether the market is pricing in the streak continuing.
Privia's numbers move together. Implemented providers grew 10.1% year-over-year to 5,644, adding 109 physicians in the quarter alone, while value-based attributed lives climbed 19.2%. That combination pushed practice collections up 12.4% to $970 million in the second quarter and 13.4% to $1.88 billion for the first half. Adjusted EBITDA rose 29% to $37.4 million, with margin as a share of care margin expanding 310 basis points to 28.3%, a sign the business is getting more profitable as it scales, not just bigger.
In late May, Privia entered New Jersey, its 25th state, through a partnership with the Urology Group of Bergen County covering 25 clinicians. Commercial attributed lives rose 11.7% to 942,000, while CMS Medicare lives jumped 55%. The company now oversees an estimated $15.7 billion in total medical spend across more than 130 value-based programs, and gross provider retention has averaged 98% over the past three years. Management raised 2026 guidance across practice collections, care margin, GAAP revenue, platform contribution, and EBITDA, with attributed lives already tracking above the prior high end.
The growth story comes with a few strings attached. Privia became a full cash taxpayer this year, and management expects only 70% to 80% of full-year adjusted EBITDA to convert to free cash flow, a figure that ***** umes the company collects a significant chunk of its 2025 shared savings payments by year-end. That ***** umption now has a complication: CMS proposed changes to the Medicare Shared Savings Program for performance year 2025 that could delay final reconciliation results until November, which management says could create an atypical year-end cash flow pattern even though the accrual impact looks minimal.
The company also holds $412 million in cash with no debt, which is a comfortable cushion, but its raised guidance still ***** umes no additional business development activity, meaning any acquisitions would be upside not yet baked in.
#year #privia
Privia's numbers move together. Implemented providers grew 10.1% year-over-year to 5,644, adding 109 physicians in the quarter alone, while value-based attributed lives climbed 19.2%. That combination pushed practice collections up 12.4% to $970 million in the second quarter and 13.4% to $1.88 billion for the first half. Adjusted EBITDA rose 29% to $37.4 million, with margin as a share of care margin expanding 310 basis points to 28.3%, a sign the business is getting more profitable as it scales, not just bigger.
In late May, Privia entered New Jersey, its 25th state, through a partnership with the Urology Group of Bergen County covering 25 clinicians. Commercial attributed lives rose 11.7% to 942,000, while CMS Medicare lives jumped 55%. The company now oversees an estimated $15.7 billion in total medical spend across more than 130 value-based programs, and gross provider retention has averaged 98% over the past three years. Management raised 2026 guidance across practice collections, care margin, GAAP revenue, platform contribution, and EBITDA, with attributed lives already tracking above the prior high end.
The growth story comes with a few strings attached. Privia became a full cash taxpayer this year, and management expects only 70% to 80% of full-year adjusted EBITDA to convert to free cash flow, a figure that ***** umes the company collects a significant chunk of its 2025 shared savings payments by year-end. That ***** umption now has a complication: CMS proposed changes to the Medicare Shared Savings Program for performance year 2025 that could delay final reconciliation results until November, which management says could create an atypical year-end cash flow pattern even though the accrual impact looks minimal.
The company also holds $412 million in cash with no debt, which is a comfortable cushion, but its raised guidance still ***** umes no additional business development activity, meaning any acquisitions would be upside not yet baked in.
#year #privia
16 days ago
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Management emphasized the validation of their fair value marks through the sale of over $64 million in portfolio ***** ets at approximately 99% of par to independent third parties.
Net investment income increased to $0.29 per share, driven by a stable core first lien book and the successful avoidance of minimum utilization penalties on credit facilities.
The company is pivoting its capital allocation strategy to prioritize share repurchases over new deal originations, citing a significant undervaluation of the stock relative to NAV.
Credit quality improved as non-accruals declined on both a fair value and amortized cost basis, with no new names added to non-accrual status during the quarter.
#Stock #value #Share #management
Management emphasized the validation of their fair value marks through the sale of over $64 million in portfolio ***** ets at approximately 99% of par to independent third parties.
Net investment income increased to $0.29 per share, driven by a stable core first lien book and the successful avoidance of minimum utilization penalties on credit facilities.
The company is pivoting its capital allocation strategy to prioritize share repurchases over new deal originations, citing a significant undervaluation of the stock relative to NAV.
Credit quality improved as non-accruals declined on both a fair value and amortized cost basis, with no new names added to non-accrual status during the quarter.
#Stock #value #Share #management
1 month ago
Cohen & Steers (NYSE:CNS) reported higher second-quarter 2026 adjusted earnings and ****** ets under management, as executives pointed to improving demand for real estate, infrastructure, preferred securities and broader real ****** ets strategies.
On the company's earnings call, Chief Financial Officer Amit Muni said Cohen & Steers generated adjusted earnings per share of $0.85, up from $0.79 in the first quarter and $0.73 in the year-earlier quarter. Net income was $44 million, rising 8% sequentially and 18% from the second quarter of last year.
→ 3 ****** e Stocks That Could Outshine ****** eX After Its IPO
Assets under management increased about 8% to more than $100 billion, driven by positive market performance and net inflows. Muni said the firm generated $1.3 billion of net inflows, "one of the strongest flow quarters in our recent history," while its institutional pipeline stood at $1.6 billion.
Revenue increased 5% from the prior quarter to $152 million, which Muni attributed to higher average ****** ets under management from market appreciation and net inflows. Total operating expenses rose 3% to $97 million, primarily due to higher incentive compensation accruals tied to increased revenue.
On the company's earnings call, Chief Financial Officer Amit Muni said Cohen & Steers generated adjusted earnings per share of $0.85, up from $0.79 in the first quarter and $0.73 in the year-earlier quarter. Net income was $44 million, rising 8% sequentially and 18% from the second quarter of last year.
→ 3 ****** e Stocks That Could Outshine ****** eX After Its IPO
Assets under management increased about 8% to more than $100 billion, driven by positive market performance and net inflows. Muni said the firm generated $1.3 billion of net inflows, "one of the strongest flow quarters in our recent history," while its institutional pipeline stood at $1.6 billion.
Revenue increased 5% from the prior quarter to $152 million, which Muni attributed to higher average ****** ets under management from market appreciation and net inflows. Total operating expenses rose 3% to $97 million, primarily due to higher incentive compensation accruals tied to increased revenue.
1 month ago
M&T Bank on Wednesday reported second-quarter net income of $818 million, or $5.32 in diluted earnings per common share, the highest earnings per share in the company's history, the company said. That compared with net income of $716 million, or $4.24 per diluted share, in the same period a year earlier.
Net interest income climbed 4.6% year over year to $1.79 billion, up from $1.71 billion in the second quarter of 2025. The net interest margin widened to 3.70% from 3.62% a year ago. The company said the increase in taxable-equivalent net interest income from the year-earlier quarter reflected growth in average loans and investment securities and favorable repricing of earning **** ets and interest-bearing liabilities.
Average total loans expanded to $141.4 billion from $135.4 billion in the second quarter of 2025, driven by a $5.0 billion increase in commercial and industrial loans, a $1.4 billion gain in residential real estate loans, and a $1.4 billion rise in consumer loans. Those gains were partially offset by a $1.8 billion decline in average commercial real estate balances, the company said.
Noninterest income totaled $740 million, compared with $683 million in the year-earlier quarter, according to Reuters. Trust income came in at $197 million, up from $182 million a year ago, while mortgage banking revenue slipped 2% to $127 million.
The provision for credit losses eased to $120 million from $125 million in the prior-year period. Nonaccrual loans dropped 23% to $1.2 billion from $1.6 billion at the end of the second quarter of 2025, the company said.
Net interest income climbed 4.6% year over year to $1.79 billion, up from $1.71 billion in the second quarter of 2025. The net interest margin widened to 3.70% from 3.62% a year ago. The company said the increase in taxable-equivalent net interest income from the year-earlier quarter reflected growth in average loans and investment securities and favorable repricing of earning **** ets and interest-bearing liabilities.
Average total loans expanded to $141.4 billion from $135.4 billion in the second quarter of 2025, driven by a $5.0 billion increase in commercial and industrial loans, a $1.4 billion gain in residential real estate loans, and a $1.4 billion rise in consumer loans. Those gains were partially offset by a $1.8 billion decline in average commercial real estate balances, the company said.
Noninterest income totaled $740 million, compared with $683 million in the year-earlier quarter, according to Reuters. Trust income came in at $197 million, up from $182 million a year ago, while mortgage banking revenue slipped 2% to $127 million.
The provision for credit losses eased to $120 million from $125 million in the prior-year period. Nonaccrual loans dropped 23% to $1.2 billion from $1.6 billion at the end of the second quarter of 2025, the company said.
2 months ago
JPMorgan (JPM) posted record Q1 net income of $16.5 billion, with markets revenue up 20% and investment banking fees jumping 28%.
Bank of America (BAC) CEO Moynihan called the economy resilient, but JPMorgan's nonperforming exposure rose 11% and nonaccrual loans surged 53%.
Dimon warned the next credit cycle will hit harder than expected, pointing to $5.1 trillion in leveraged finance as the key stress point.
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JPMorgan Chase (NYSE:JPM) reported Q1 2026 net income of $16.5 billion, with EPS of $5.94, up 17% from a year earlier. Revenue hit $49.836 billion. Markets revenue set a record at $11.6 billion, up 20% year over year. Investment banking fees jumped 28%, with advisory fees up 82%. The stock has climbed 26% over the past year.
Bank of America (BAC) CEO Moynihan called the economy resilient, but JPMorgan's nonperforming exposure rose 11% and nonaccrual loans surged 53%.
Dimon warned the next credit cycle will hit harder than expected, pointing to $5.1 trillion in leveraged finance as the key stress point.
Act now: the **** yst who called NVIDIA in 2010 just named his top 10 AI stocks — and JPMorgan Chase didn't make the cut. Grab the names FREE today.
JPMorgan Chase (NYSE:JPM) reported Q1 2026 net income of $16.5 billion, with EPS of $5.94, up 17% from a year earlier. Revenue hit $49.836 billion. Markets revenue set a record at $11.6 billion, up 20% year over year. Investment banking fees jumped 28%, with advisory fees up 82%. The stock has climbed 26% over the past year.
