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Differentiated Analysis on Business Development Companies

$7.12 billion in stress. 171 BDCs tracked. And exposure is only growing.

Octus analysed the full universe of Business Development Companies to produce the most comprehensive nonaccrual data in the market, used by analysts at leading buy-side firms and investment banks.

BDC Q4'25 Nonaccruals

Aggregate nonaccrual debt hit $7.12 billion at cost in Q4 2025 — up 6% from the prior quarter. But reported figures only tell part of the story.

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Market-wide nonaccrual rates: Aggregate and per-BDC nonaccrual rates at cost and fair value, with full quarter-over-quarter comparisons across public and private BDCs.

Cross-BDC exposure analysis: Our proprietary methodology captures the full sector-wide footprint of every nonaccrual issuer — revealing $10.66B in adjusted cost exposure versus $7.12B reported, and $7.02B at fair value versus $3.77B reported.

Sector-by-sector breakdown: Healthcare surged to the top by loan value at $1.79B — a 68% jump from Q3.

Mark-to-market trends:
Average marks on nonaccrual drawn loans tracked across the top five sectors.

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BDC Q3’25 Nonaccruals Report

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