u/Such-Yam-1131

Top 12 listed BDCs swung from +$4B net funding in Q2 2024 to -$2.5B in Q1 2026 per PitchBook LCD. Three consecutive quarters of negative net funding as sales/repayments outpace new commitments. Non-accrual rates hit 2.8% median in Q2, highest since 2017. Golub Capital CEO: "We're in a credit cycle. Others denied it for a while. I don't think there's a lot of denial any more."

https://www.ft.com/content/67acde0d-4154-4332-b33b-2d03d3a86007

Private debt yield-to-maturity currently ~10% per Cliffwater Direct Lending Index, vs ~8% for HY bonds and ~7.5% for leveraged loans. The yield premium over public markets has compressed from 300-400bps historically to ~200bps. All three converged near 4% during the 2020-2021 zero-rate era before spiking post-2022. Credit stress concentrated in 2021-2022 vintage loans, which account for ~75% of recent foreclosure activity.

https://www.blackrock.com/us/financial-professionals/insights/navigating-a-maturing-private-credit-market

Leveraged loan and HY bond spreads diverged sharply in H1 2026 per SPDJI/Bloomberg. Loan 3Y discount margins widened from ~450bps to ~525bps at the March peak on SaaSpocalypse fears, settling near ~470bps by June. CDX HY spreads spiked to ~440bps in March/April but retraced to ~310bps. Software-heavy loan index got hit harder than HY bonds, where tech is only ~3% of the index vs ~12% in leveraged loans.

https://www.cmegroup.com/articles/2026/hedging-sub-investment-grade-debt-with-leveraged-loans-futures.html

Record $36.4B in gross new capital commitments in Q2 2026, up from $29.5B in Q1 and topping the prior peak of $35.9B in Q4 2025. Deployment at $35.9B, rebounding from $32.3B in Q1 but still below Q4 2025's $45.8B. AUM hit $671B; uninvested capital at a record $170B. Credit led with $23.7B in inflows. Institutional demand filling the gap left by retail retreat.

https://www.reuters.com/legal/transactional/ares-hauls-record-36-billion-private-credit-fundraising-momentum-2026-07-31/

Credit fundraising dropped to $1.8B in Q2 2026, less than half of the prior quarter and the lowest since 2023 per company filings. Real Assets (~$4.4B) now driving nearly 60% of total fundraising as data center demand offsets credit weakness. Total quarterly fundraising of $7.6B, down from $12B+ peaks in mid-2025. GP Stakes contribution also shrinking. The credit arm that built Blue Owl is no longer its growth engine.

https://www.ft.com/content/c8e8502f-91c2-4dcd-b39c-e99c67b93826

HY distressed subset par value sits at ~$60B with market value near ~$35B per PitchBook LCD, approaching October 2025 lows. The gap between par and market value has widened significantly since mid-2024. Leveraged loan distress ratio at 6.87%, with ~45% of sub-80 debt in software-related sectors. LMEs from 2023-2024 are "limping along" per Canyon Partners.

https://pitchbook.com/news/articles/h2-2026-distressed-outlook-elevated-cost-of-capital-software-debt-in-focus

Here are some front-office credit roles that are worth looking at:

• Athene, Associate, IG Credit Research (Financials): IG credit research covering the financials sector. https://jobs.levfinjobs.com/j/CfIjNEJzv2

• Athene, Associate, IG Credit Research: Investment grade credit research seat. https://jobs.levfinjobs.com/j/6Rbin5SEO1

• Ares, Senior Associate, Credit, US Direct Lending: Direct lending investing seat. https://jobs.levfinjobs.com/j/HMKilLxEiS

• Blue Owl, Alternative Credit, Asset-Based Finance, VP: ABF investing role on the alternative credit team. https://jobs.levfinjobs.com/j/6sqVv8LNcF

• Brookfield Asset Management, VP, Liquid Credit (Investments): Liquid credit investing seat. https://jobs.levfinjobs.com/j/Ln9YdZE6mz

• Golub Capital, Analyst / Associate, Direct Lending: Direct lending investing seat (analyst or associate level). https://jobs.levfinjobs.com/j/SfifnZr9rp

• Monroe Capital, Senior Associate / AVP, Asset-Backed Finance: ABF seat in the alternative credit solutions group (hybrid). https://jobs.levfinjobs.com/j/KLr5UThV9s

If you're looking for jobs in leveraged finance, it's worth checking out the jobs directly on the LevFinJobs website: https://jobs.levfinjobs.com/

Q2 2026 redemption requests (magenta bars) hit new highs at most funds per FT data. Apollo worst at ~17%, Cliffwater ~17%, HPS ~14%, Blackstone ~10%. Every fund except BlackRock shows Q2 requests exceeding Q1. Gray says "material deceleration" in Q3 but BCRED raised just $1B in Q2, down 70% YoY. Institutional money still flowing in; retail remains in retreat.

https://www.ft.com/content/e44325f8-c452-40d1-b423-b1f1c39ee314

BlackRock drew $192B in Q2 net flows, dominated by long-term inflows per company data. Quarterly flows have scaled dramatically from ~$50-100B range in 2023 to $200-350B in late 2025/early 2026. Q1 2026 peaked near $350B before moderating. Private credit inflows fell to $6B, lowest since HPS acquisition, as retail exodus continues. Infrastructure raised $5.2B, its best quarter yet.

https://www.ft.com/content/ea81b3ad-8154-421b-aeae-01407877f548

Here are some front-office credit roles from this week that are worth looking at:

• Ares, Senior Associate, Alternative Credit: Investing seat on Ares' alternative credit team. https://jobs.levfinjobs.com/j/JdYJhh5i2F

• Audax Group, Associate, Private Debt: Direct lending / private debt investing seat. https://jobs.levfinjobs.com/j/GiQo_EPCGO

• Ares, Senior Associate / VP, Credit Secondaries: Credit secondaries investing role. https://jobs.levfinjobs.com/j/6Keie2WYq3

• Bracebridge Capital, VP, Credit Trader: Credit trading seat at the roughly $12bn relative value fund. https://jobs.levfinjobs.com/j/QY49qZlns8

• Apollo, Principal, Global Corporate Credit (Retail, Autos & Mobility): Sector seat in Apollo's industry research / global corporate credit group. https://jobs.levfinjobs.com/j/8Uxrq53XYB

• Apogem Capital, Senior Associate, Underwriter: Underwriting seat on the private credit team (hybrid). https://jobs.levfinjobs.com/j/jZORZ6PtSA

• Ares, Associate, Credit, US Direct Lending: Direct lending investing seat. https://jobs.levfinjobs.com/j/mW1cEmFwx7

If you're looking for jobs in leveraged finance, it's worth checking out the jobs directly on the LevFinJobs website: https://jobs.levfinjobs.com/

US closed-end direct lending fundraising hit ~$16B in Q2 2026 per Preqin, the strongest quarter in four years. Sharp rebound from near-zero in early 2025. Institutional capital filling the gap left by retail exodus; Apollo brought forward its flagship fund launch by six months to capture demand. Retail funds saw $22B+ in Q2 redemption requests while pensions are committing hundreds of millions to new vehicles.

https://www.ft.com/content/ea275bbd-e411-4db5-a9d2-415666f2a923

State Street survey of ~480 private markets executives shows individual asset-level valuations (31.1%) and accuracy/anomaly detection (23.5%) are the top NAV timeliness concerns. 23% want daily NAV calculations. SEC Commissioner Uyeda says rulebook revamp may be needed; Nobel laureate William Sharpe himself disapproves of funds using his ratio to market illiquid assets.

https://www.bloomberg.com/news/newsletters/2026-06-24/sec-sounds-alarm-on-disclosure-bloat-at-private-credit-funds

Redemption requests accelerating across every major fund per FT data. Cliffwater and Apollo worst at ~17% in Q2 2026, HPS at ~14%, Blackstone at ~10%. Every fund shows Q2 requests higher than Q1. Nearly $15B in requests across 9 major funds managing ~$200B; less than 40% met. All capping at 5%. Apollo's Zito: "There's been no run." The chart says otherwise.

https://www.ft.com/content/0fa4c280-2fa0-4be0-9fac-054cd49e87fa

Apollo put up a batch of credit roles this week, spanning Private Investment Grade, IG credit research, and global corporate credit. Worth a look if you're in or around credit:

• Principal, Global Corporate Credit (Retail, Autos & Mobility): Sector seat in Apollo's industry research / global corporate credit group. https://jobs.levfinjobs.com/j/vrTVvmyaun

• Principal, Private IG (New Deals, Origination): Origination-focused investing role on the Private Investment Grade team. https://jobs.levfinjobs.com/j/62n_aQRwmu

• Principal, Private IG (Portfolio Management / Workouts): Portfolio management and workouts seat on the Private IG team. https://jobs.levfinjobs.com/j/GAnVAoJiVG

• Associate, IG Credit Research: Investment grade credit research. https://jobs.levfinjobs.com/j/V_H37YHZir

• Associate, IG Credit Research (Financials): IG credit research covering the financials sector. https://jobs.levfinjobs.com/j/X7grCpfOVQ

If you're looking for jobs in leveraged finance, it's worth checking out the jobs directly on the LevFinJobs website: https://jobs.levfinjobs.com/

Pretium's Pruzan says private credit turmoil is pushing capital toward real estate debt backed by physical assets that AI can't make obsolete. Charging S+600-650bps on homebuilder loans, delivering mid-teens returns with leverage. Trade-off: five-year lockups with no redemption windows. US homebuilder confidence at 10-year low; housing starts at lowest since 2020.

https://www.bloomberg.com/news/articles/2026-06-18/private-credit-turmoil-pushes-debt-investors-to-real-estate-bets

Here are some front-office credit roles from this week that are worth looking at:

• Neuberger Berman, Research Analyst: Research seat on the municipal fixed income team. https://jobs.levfinjobs.com/j/bIA_3LXCKg

• Schroders, Project Finance Analyst (12-Month Contract): Project finance credit role on the global fixed income team. https://jobs.levfinjobs.com/j/Or1Ta0bY8N

• Rockefeller Capital Management, Fixed Income Analyst: Fixed income credit research. https://jobs.levfinjobs.com/j/4QKCPEuXel

• Balyasny Asset Management, High Yield Credit Researcher/Analyst: Seat on the high yield credit pod, pitched at entry level (0 to 3 years). https://jobs.levfinjobs.com/j/UQLqELVsXn

• BlackRock, Leveraged Finance Credit Research, Associate: Credit research within BlackRock's Private Financing Solutions group. https://jobs.levfinjobs.com/j/YUd8IZLm7Z

• Ares, Associate, Credit, US Direct Lending: Direct lending investing seat. https://jobs.levfinjobs.com/j/nK7RIUONfI

If you're looking for jobs in leveraged finance, it's worth checking out the jobs directly on the LevFinJobs website: https://jobs.levfinjobs.com/

Both IG and HY spreads hovering near multi-decade lows per Bloomberg, well below GFC peaks of ~600bps and ~2,000bps respectively. Pimco calls this "complacency rather than strength" in its secular outlook. Says "the credit loss cycle is upon us" with "significantly higher losses" expected in leveraged and private direct lending. Rising PIK and maturity extensions signal "a more genuine default cycle is now unfolding."

https://www.bloomberg.com/news/articles/2026-06-10/pimco-says-credit-loss-cycle-has-begun-favors-quality-bonds

Wall Street-backed insurers rely heavily on private ratings: Everlake (Blackstone) at 38% of its $16B portfolio, NZC Capital (Eldridge) 28%, Athene (Apollo) 24% of $164B, Global Atlantic (KKR) 22% of $113B, vs 12% national average per S&P Capital IQ. Columbia researchers found private ratings are 2-3 notches higher than public ratings with the same loss risk. A BBB private rating performs like a BB public one.

https://www.bloomberg.com/news/articles/2026-06-08/inflated-private-ratings-are-masking-credit-risk-columbia-study-says

Non-traded BDCs returned ~49% cumulatively since 2021, beating listed BDCs (~36%), leveraged loans (~33%) and US bonds (~2%) per RA Stanger. But listed BDCs have plunged from ~57% peak in early 2025, and the gap is closing fast. April fundraising dropped 74% YoY. BofA warns that 3-4 quarters of 5% redemptions could trigger rating downgrades.

https://www.reuters.com/commentary/breakingviews/private-credits-motor-can-hum-again-price-2026-06-02/