$ARES Tape Reports
Per Ticker.id: $ARES Tape Reports — 2 podcast mentions across 2 podcasts (30 days), latest 2026-08-04 16:15 UTC.
Let's talk about private credit. This is a very underappreciated slice of the credit markets these days as more and more money has gone to these entities, these non-bank entities where the risk is very opaque. It's hard to know exactly what's in these private funds because they are private, but there are public versions of them. Another reason why I think buying private credit is usually a very bad idea, because you can get the same type of investment with a lot more liquidity in what are called BDC companies. Now, there are 10 large— the 10 largest ones have now reported earnings. Names like Ares Capital, Blackstone Secured Lending, KKR Capital, Golub Capital, Goldman Sachs BDC. They have, they have one. Main Street Capital, MidCap Financial Investment, Morgan Stanley Direct Lending, Blue Owl Capital, and Sixth Street Specialty Lending. Those are the top 10. And so looking at their results in aggregate can kind of tell you what's going on in that slice of the, the financial industry that nobody really talks about. So what did it say? Well, there's something in the industry called non-accrual status. What does that mean? Basically means they're not paying any more interest. So when, or when the company is not assuming they're going to get interest, it basically is when a company is 90 days or more past due on payment and they see enough credit deterioration they don't expect to be made whole. That's a default. When you're lending money, you don't get your interest, you don't get your original principal back— that's a default. And this will feed into the dividend eventually if it continues to grow. So let's look at the numbers. With all of these names, the number of borrowers at least one debt instrument in non-accrual status went from 4.26 to 4.69. So about 1 in 20 nearly. That's way up from 2023 when it was at 3.69. So it's gone from 3.69 to 4.69 in 2 years, 2 and a half, uh, 2 and a half years. And this is when the size of these BDC companies have basically doubled. Over the past 3 years. It's about $560 billion of total debt. That's as of the first quarter of this year. In dollar terms, non-accrual debt rose 39% to $2.8 billion. That brings it— that, that brings the total to roughly $10 billion.
Justin Klein — InvestTalk · Regulation catches up to digital assets · 2026-08-25