Report
Early Warning Signals in Private Credit? What BDC Portfolios Reveal about Emerging Risks
Abstract: Private credit—lending by nonbank financial institutions—has grown to over $1 trillion in the United States, yet most of it remains opaque to investors and policymakers because private credit funds are not required to publish their holdings. Business development companies (BDCs) are an exception and provide a window into this segment of the credit markets. All BDCs are publicly registered investment vehicles that must file periodic reports with the Securities and Exchange Commission, including quarterly and annual filings. We analyze these disclosures to detect trends in the pricing of BDC loans, borrowers’ creditworthiness, and the industry composition of BDC loan portfolios.
JEL Classification: G23; G24; G28; G32;
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https://www.bostonfed.org/-/media/Documents/Workingpapers/PDF/2026/CPP2606.pdf
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Bibliographic Information
Provider: Federal Reserve Bank of Boston
Part of Series: Current Policy Perspectives
Publication Date: 2026-08-05
Number: 26-6