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Feb 13, 2026
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AVOID
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Bloomberg investigation found BDCs have mislabeled ~$9 billion in loans; "Software" exposure is often hidden under "Business Services" or "Retail" labels to avoid investor scrutiny. Private Credit has been sold as a safe yield haven. If the underlying collateral is actually B2B software (the sector most at risk from AI disruption), the book value of these loans may be overstated. Redemptions are already ticking up. AVOID. Transparency risk + Sector headwinds = "Cockroach theory" (where there is one mislabeled loan, there are likely more). Software companies prove resilient; BDCs maintain strong repayment rates. |
Bloomberg Markets
Inflation Data Calms Markets | Bloomberg Open...
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