The SaaS Time Bomb Inside BDCs: A Deep Dive Inside The Next Private Credit Crisis

In a note published overnight by JPMorgan credit analysit Kabir Caprihan, the financial analyst picks up where we left off yesterday with "Private Credit Stocks Crash After Shock Report Reveals Huge Exposure To Collapsing Software Sector", and writes that, even though it may not seem like it, BDC analysts had "considered, evaluated, and discussed exposure to software within the sector over the last 12-18 months." In fact, Caprihan notes, "it was the most discussed topic at our conference last year, as every management team was asked the question."

So, when software loans dropped this week and BDCs crashed, some of the frustration from the analyst community was understandable according to the JPM analyst: "It just feels like any part of the market can “sneeze” and according to the market, the BDCs have the flu or a cold."