WASHINGTON (March 31): Private credit lenders are working with specific borrowers to avoid loan defaults by enabling them to delay cash payments and extend concessions on their ​debt, in a growing sign of stress and postponement of pain in the sector. Under pressure to maintain a low overall level of non-performing loans, or non-accruals, BDCs are modifying loan agreements to include PIKs. Deferred payments gain tractionPIKs allow borrowers to defer cash interest payments, and instead add the dues to their loan principal. Lenders limit investor withdrawalsFacing heavy redemption requests, some BDCs have gated their funds, capping the amount that investors can withdraw. Behind the scenes, they are working to prevent markdowns in their loan portfolios by creating more payment flexibility for borrowers in the software sector.

Source: The Edge Markets April 01, 2026 08:45 UTC