9fin flags $5.7 billion in BDC loans facing valuation erosion

The report, based on Q1 2026 filings, pinpoints 468 individual loan positions that have seen significant value erosion, falling below 90% of their par value. These assets represent nearly 2% of the total $305.2 billion BDC industry volume. The data reveals that some troubled credits are widely held; for instance, logistics software firm Solera and analytics provider Qlik appear in 10 different BDC portfolios each.

Blackstone Private Credit Fund carries the highest exposure among surveyed vehicles, with 37 cited positions—more than double that of any other fund. Other notable entities with significant identified risk include Palmer Square Capital BDC and Blue Owl Credit Income Corporation. This concentration of risk coincides with a broader market contraction, where average net asset value for public BDCs dropped to 92.4% year-over-year, while share price discounts widened sharply to 23.24%.

9fin’s methodology aims to provide credit teams with a consolidated view of fair value marks, moving away from fragmented, company-by-company analysis. By tracking these negative valuation trends, the platform seeks to help investors identify potential defaults before they reach non-accrual status.