BDC Weekly Review: Public Credit Markets Weighing On BDC NAVs

AI Briefing

• – Public credit markets weighed on BDC NAVs in March, despite a 2% decline, as cheap valuations and lack of duration risk helped income assets outperform.
• – The sector's fall was largely driven by concerns over interest rate hikes and the Federal Reserve's balance sheet run-off.
• – BDCs, however, benefited from their lower beta and shorter durations compared to other income assets.