Private credit investing demand has pushed NAV per share higher

Private credit investing demand has pushed NAV per share higher across listed BDCs in June 2024, prompting analysts to upgrade EPS projections for the next three quarters. President Trump’s recent executive order on alternative assets and 401(k)-style retirement plans has drawn fresh attention to the rapid growth of private markets, including private equity, credit, real estate and infrastructure. More liquid bank debt, on the other hand, comes at a much lower cost, though the refinancing process can be trickier. Private credit investing trends show mid-market lending yields holding above 9%, well above corporate bond averages. Equity markets could price in stronger net interest margins for asset managers with large private credit portfolios.