BDC first-lien debt valuations increased but second-lien and subordinated marks fell in 1Q23

LSEG (1)
Content hub / Article / LSEG / BDC first-lien debt valuations increased but second-lien and subordinated marks fell in 1Q23

BDC first-lien debt valuations climbed but second-lien and subordinated debt marks fell in 1Q23. The weighted average mark on BDC first-lien debt holdings increased by 25bp, to 96.59% in the most recent quarter. In contrast, second-lien and subordinated debt declined by 18bp and 59bp, respectively, to 91.50% and 94.12%. At the fund level, a small majority (55%) of BDCs saw the weighted average marks on their debt portfolio move higher in 1Q23. Looking lower down the price spectrum, just over half (52%) of BDCs have more than 5% of their loan portfolio marked below 85%. Digging deeper, 23% of BDCs have more than 10% of their portfolio marked below 85%.

(Past performance is no guarantee of future results.)

Contact CJ Doherty
2026 Private Credit Investor Survey

Share your perspective

2026 Private Credit Investor Survey

Institutional investors, RIAs and financial advisors - we want to hear from you. Take this two-minute anonymous survey and receive the results report.
Take the survey
US Private Credit League Tables H1'26

Report

US Private Credit League Tables H1'26

The definitive rankings covering private credit activity in H1'26.
Download
PitchBook's Q2 2026 US PE Breakdown

Report

PitchBook's Q2 2026 US PE Breakdown

Software freezes and energy powers on as US PE deal value falls 38% in Q2 2026.
Download

Latest news

    US Leveraged Loans Return 3.36% to Investors YTD

    The Bloomberg US Leveraged Loan Index (Ticker: LOAN) returned 0.96% in August and has gained an additional 0.28% through September…

    Read More

    PE dry powder

    The capital that is being raised is flowing overwhelmingly to the largest, most established managers.

    Read More

    Middle market debt held by BDCs vs High yield vs Treasury yields

    The blue line represents the current dividend yield of the VanEck BDC Income ETF (BIZD), which stood at 11.7% as…

    Read More