Borrowers in the US private debt market are using delayed interest payments and maturity extensions to avoid default, potentially masking the overall extent of credit stress, according to Moody’s Ratings.

Prospect Capital Corp. is discussing a yield of about 8% on its first junk-bond offering since 2021, underscoring the rising costs of funding for private-credit funds.

Kentucky Derby operator Churchill Downs Inc. is seeking to raise $500 million to refinance existing debt as maturities loom, adding to a rush of firms tapping the market for risky loans.

The default rate for a group of US private debt borrowers rose to a record in August, according to Fitch Ratings.

Blue Owl Technology Finance Corp. raised $150 million through a private placement, its third financing since June, the software-focused private credit fund said Friday.

Two private credit funds sold more investment-grade bonds Monday than they initially targeted, following a lull of deals from so-called business development companies to start the third quarter.

Blue Owl Capital Inc. sold $750 million of high-grade debt, up from initial discussions of $500 million, after receiving a large amount of investor orders, according to people familiar with the matter.

Blue Owl Capital Inc. sought to shore up confidence in two of its private credit funds, stressing that borrower fundamentals remained strong amid signs the AI-induced anxiety that befell the industry is abating.

The default rate across 1,300 US private debt borrowers tracked by Fitch Ratings rose to a record high in the second quarter, according to a report released Thursday.

Len Tannenbaum, who sold his $5 billion credit firm to distressed debt pioneer Oaktree almost a decade ago, is looking to raise a new fund to capitalize on turmoil in the $1.8 trillion private credit market.

Blackstone Inc. rolled out a platform to lend against physical assets like inventory and equipment, as alternative asset managers increasingly muscle into territory long dominated by banks.

One of Blue Owl Capital Inc.’s private credit funds that capped redemptions earlier this year raised $500 million in the investment-grade bond market on Monday.

A private credit fund managed by Blue Owl Capital Inc. sold $500 million of investment-grade bonds on Tuesday, according to a person familiar with the matter.

A private credit fund jointly managed by Future Standard and KKR & Co. sold $900 million of junk bonds on Monday, according to people familiar with the matter, in a rare high-yield offering by a publicly traded credit fund.

Golub Capital is capping withdrawals from its private credit fund after investors sought to pull 8.5% of shares, the latest instance of a money manager restricting outflows amid a wave of redemption requests.

A private credit fund managed by Sixth Street Partners tumbled after lowering its dividend and reporting a quarterly loss, as market-wide volatility eroded the fair value of its loan portfolio.

Three of the biggest names in private credit moved to reassure investors this week about the AI risks facing their software borrowers, deploying proprietary “score cards” and outside consultants.

Three of the biggest names in private credit moved to reassure investors this week about the AI risks facing their software borrowers, deploying proprietary “score cards” and outside consultants.

The fund finance market has surged past $1 trillion, according to a pair of new reports, as money managers borrow more to manage liquidity and bridge delayed exits.

Private credit funds with outsized exposure to software and tech loans face rising refinancing and credit risks as a wave of debt maturities loom from 2028, according to Moody’s Ratings.