(April 7): Moody's Ratings on Tuesday revised its outlook on US business development companies (BDCs) to negative from stable, citing rising redemption pressures, higher leverage and weakening access to funding markets. The pressure falls most acutely on non-traded BDCs, which account for more than 60% of the sector. The outflows leave those non-traded funds "more on defense when it comes to deploying additional capital until the current market shift and uncertainty resolve," the ratings agency said. The non-traded funds raise equity and pair it with leverage to lend to private companies, structured to continuously raise capital while offering limited, periodic liquidity to investors. The outlook could return to stable if redemption pressures ease, leverage remains contained and asset quality risks moderate, Moody's said.

Source: The Edge Markets April 07, 2026 16:24 UTC