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.
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Maturities of loans switching to at least partial PIK tends to be longer-dated than Octus’ other stress trackers: nonaccrual and fair value write-down reports.