Market Leader in Private Credit

In this report, an update to our Q4 analysis, KBRA continues to track and present several key metrics in a dashboard format, sourced from quarterly collateral loan tapes provided by the issuers of KBRA-rated recurring revenue loan (RRL) asset-backed securities.

Private credit lenders have suffered relatively few losses from lending to high-growth software companies. However, as the strategy matures and underwriting standards evolve, KBRA sought to understand if the relatively low loss rate is sustainable.

KBRA releases its Business Development Company Ratings Compendium for 1Q25, highlighting BDCs’ continued resilience and caution amid high base rates, tighter spreads, and uncertain trade policies.

KBRA examines rated feeder fund notes investing in evergreen funds, which are perpetual and allow periodic redemptions. The report explores key analytical considerations, including liquidity needs and maturity mismatches with rated notes.

KBRA releases a recap of the annual CLO Conference hosted by the Loan Syndications & Trading Association (LSTA) and DealCatalyst, which took place at the Marriott Marquis Hotel in New York on April 28-29. With up to 1,700 attendees, the conference comes on the heels of record U.S. CLO issuance of around $200 billion in 2024.

In this quarterly update, we review the more than 2,200 KBRA assessments completed for 1,972 unique middle market (MM)-sponsored borrowers over the last 12 months (LTM) ending March 31, 2025. These companies collectively account for $983 billion in debt, offering a clear view of the overall direct lending market.