Private credit dislocation

WSJ reports a fresh HLEND gating event: investors requested 13.3% of shares in the second quarter of 2026, and BlackRock will repurchase only 5% under the redemption cap. The same report says BCRED faced a 10% request and Cliffwater handled 17% for its $31 billion fund.

Published: 2026-06-13. In the second quarter of 2026, investors requested to redeem 13.3% of shares from BlackRock's flagship private-credit fund, up from 9.3% in the previous quarter; BlackRock will only repurchase 5% as per its redemption cap, returning funds to investors on a prorated basis. Other private-credit funds are also experiencing elevated investor withdrawals, with Blackstone's BCRED facing a 10% redemption request and Cliffwater handling 17% for its $31 billion fund.

Financial Times reports the BlackRock HPS Corporate Lending Fund limited withdrawals for a second consecutive quarter, with the article page identifying the vehicle as a $13bn fund and the redemption honoring rate as less than 40%.

Published: 2026-06-12. BlackRock private credit fund honours less than 40% of redemption requests. The firm's $13bn HPS Corporate Lending Fund limits withdrawals for a second consecutive quarter.

Reuters reports that U.S.-focused private credit direct lending issuance slowed materially through May 2026 while second-quarter redemption pressure persisted at BCRED and Cliffwater.

PitchBook data indicates new loan issuance by private credit lenders fell to $44.76 billion in the three months ended May 2026, down about 40% from $74.56 billion in the first quarter. Blackstone and Cliffwater both capped withdrawals from their private credit funds at 5% after redemption requests exceeded quarterly limits, with investors seeking to redeem 10% of Blackstone Private Credit Fund shares and 17% of Cliffwater's $31.3 billion fund.

Alternative Credit Investor reports Moody's Analytics analysis that headline stress measures in BDC portfolios may overstate credit deterioration, a partial counterfactor to the gating and redemption-pressure evidence.

Published: 2026-06-05. Headline measures of stress in private credit portfolios may be overstating the extent of credit deterioration across business development companies (BDCs), according to new analysis by Moody's Analytics. Moody's said that investors often look at the proportion of loans marked below par as a simple indicator of stress in private credit portfolios, but analysis of more than 6,000 investments across 34 listed BDCs suggests that below-par marks do not always reflect worsening borrower credit quality.

Reuters reports that BCRED capped second-quarter withdrawals at the customary 5% threshold after requests rose to 10% of outstanding shares, up from 7.9% in the prior quarter.

Investors sought to pull out 10% of shares in the second quarter, compared with 7.9% in the previous quarter, from the $79 billion Blackstone Private Credit Fund (BCRED). It limited withdrawals to 5%, the customary threshold for these vehicles.

Alternative Credit Investor reports a Moody's Ratings action cutting the outlook on Blackstone Secured Lending Fund and Golub Capital BDC from stable to negative, with BXSL non-accruals above the paper's 4% at-cost direction-up threshold.

Moody's Ratings has dropped the outlook on two business development companies (BDCs) managed by Blackstone and Golub Capital from stable to negative, citing signs of deteriorating asset quality from their software exposure. For BXSL, Moody's noted that elevated leverage has coincided with weakening asset quality. Non-accrual investments as a percentage of total investments at cost rose to 4.7 per cent in the first quarter, up from 0.6 per cent previously.

Alternative Credit Investor reports Moody's Ratings cut the outlook on Blackstone Secured Lending Fund and Golub Capital BDC from stable to negative while affirming both Baa2 ratings, citing elevated leverage and weakening asset quality.

Published: 2026-06-03. Moody's Ratings has dropped the outlook on two business development companies (BDCs) managed by Blackstone and Golub Capital from stable to negative, citing signs of deteriorating asset quality from their software exposure. The ratings agency said it has changed the outlook for the Blackstone Secured Lending Fund (BXSL) and Golub Capital BDC, while affirming the Baa2 rating on both funds.

Alternative Credit Investor reports Fitch's counterbalancing view that rated non-traded BDCs can manage elevated tenders over the next year, while Fitch still expects slower inflows and redemption requests above 5% in Q2 2026 and potentially throughout the year.

Fitch said all of its rated BDCs remain below the 2.0x leverage threshold across its stress scenarios, indicating that current asset coverage cushions are sufficient to absorb elevated redemptions and valuation pressure over the next year. Overall, Fitch said it expects redemption requests to remain above five per cent in the second quarter of 2026 and potentially throughout the year, but it views maintaining quarterly tender caps at five per cent as a prudent approach to managing leverage and liquidity.

Reuters reports that unrealised losses at US BDCs reached 2.35% of NAV in Q1 2026, the steepest quarterly hit since Q2 2022.

aggregate unrealised losses equalled 2.35% of net asset value in the first quarter of 2026, the steepest quarterly hit since the second quarter of 2022

The Financial Stability Board reiterated official monitoring of private credit vulnerabilities, citing $1.5-2.0 trillion of total assets at end-2024 and follow-up work on liquidity mismatch.

total assets estimated between $1.5-2.0 trillion at end-2024; liquidity mismatch in certain private credit funds