Saturday, October 10, 2026
Shareholders in Blue Owl Technology Income Corp. asked to sell 39 per cent of the fund back in the third quarter, about $1.1 billion. The fund will buy back 5 per cent, so each request will be filled at about 13 per cent. At Blue Owl's larger credit fund, requests fell for a second quarter, to 16.8 per cent of shares. Across the two, investors asked for $4.2 billion.
Florida's insurance regulator suspended Atlantic Coast Life's licence on 30 September, finding that once its investments are valued under state limits the insurer has been short of required surplus since at least September 2025, by $170 million at the end of June. South Carolina, where the company is based, has asked a court to take it over. Its petition says about $900 million of the insurer's annuities reach the end of their surrender-charge periods this year.
One of Australia's largest private credit managers wrote down three listed funds on Monday, by 2, 10 and 12 per cent, and said a clean audit was expected on Wednesday. On Wednesday the auditor said it was not ready. Metrics has now suspended redemptions and stopped publishing net asset values in the unlisted funds underneath. The share prices had been pointing at a lower number for months.
Fitch put the trailing twelve-month default rate across 1,300 private credit borrowers at 6.3 percent at the end of August, a record, with 14 default events in the month. Healthcare providers and industrial manufacturers are both running near 10 percent. On Wednesday the Federal Reserve raised the rate almost all of that debt is priced against.
Moody's puts expected ultimate recoveries on first-lien middle-market loans at about 68 cents, against a long-run average in the high seventies. Between 90 and 95 percent of broadly syndicated issuance now carries no financial maintenance covenant. Those two facts are the same fact.
Credit secondaries volume went from about $6bn in 2023 to roughly $11bn in 2024 and is expected to top $18bn for 2025. Quality stakes change hands at 95 to 99 percent of net asset value. That is either evidence the marks are right, or evidence that only the defensible ones get offered.
One account of second-quarter results says conditions have begun to stabilise. Another, from a review of filings by 44 business development companies, says portfolios moved further below cost. Ares Capital's non-accruals rose 15 percent to $708m. The reports do not contradict each other; they describe different derivatives of the same line.
Around forty lenders funded one Sydney developer, and each carried its own view of what the loans were worth. An insolvency does not create the loss. It supplies the first price anyone is obliged to accept.
The asset class that ate corporate lending is maturing. What it built while growing is now permanent market structure.