Q2’26 BDC analysis shows additional 184 bps of nonaccruals at cost

Read the full Data Drop here or reach out if you are interested in the full nonaccruals report.

In a universe of 173 business development companies, or BDCs, Octus identified a total of $9.5 billion of debt (at cost) in nonaccrual status reported in the second quarter of 2026, a slight decline of 5% from $10 billion in the first quarter of 2026. The aggregate debt nonaccruals represented 1.9% of total aggregate BDC reported debt investments (at cost) in the second quarter, down from 2.02% the prior quarter. Although there was a sequential decline in nonaccruals, the total cost of nonaccruals was 58% higher year over year.