Marker 01

A bank retreat from private credit piles pressure on business development companies already reeling from a wave of redemptions, according to SLR Investment Corp. “You’re starting to see banks get nervous and start to pull back,” the BDC’s co-Chief Executive Officer Michael Gross tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Arnold Kakuda in this episode of the Credit Edge podcast. “It’s going to increase people’s cost of capital, which will make it harder for people to invest efficiently,” said Gross, who led Apollo Investment Corporation, part of the early wave of BDCs, before starting SLR in 2006. They also discuss software distress, how to avoid fraud and why BDCs still work for retail investors.

<p>A bank retreat from private credit piles pressure on business development companies already reeling from a wave of redemptions, according to SLR Investment Corp. &ldquo;You&rsquo;re starting to see banks get nervous and start to pull back,&rdquo; the BDC&rsquo;s co-Chief Executive Officer Michael Gross tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Arnold Kakuda in this episode of the Credit Edge podcast. &ldquo;It&rsquo;s going to increase people&rsquo;s cost of capital, which will make it harder for people to invest efficiently,&rdquo; said Gross, who led Apollo Investment Corporation, part of the early wave of BDCs, before starting SLR in 2006. They also discuss software distress, how to avoid fraud and why BDCs still work for retail investors.</p>

The Credit Edge reviews the top credit news of the week and looks at the week ahead, with in-depth research of the most important corporate sectors, trends and themes. Analysis of specific corporate bonds and credit default swaps is backed by Bloomberg Intelligence's robust data sets and indexes.

<p>The Credit Edge reviews the top credit news of the week and looks at the week ahead, with in-depth research of the most important corporate sectors, trends and themes. Analysis of specific corporate bonds and credit default swaps is backed by Bloomberg Intelligence's robust data sets and indexes.</p>

The Credit Edge by Bloomberg Intelligence

BDC Veteran Expects Private Credit Fund Stress as Banks Pull Back

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/c65a381f-5eee-49ae-92eb-b412013d9236/transcript