The Rapid Rise Of Private Credit And The Expanding Role Of BDCs
The private credit market has experienced significant growth, reaching an estimated USD 2.6 trillion by 2029, driven by regulatory changes post-2008 financial crisis. Business Development Companies (BDCs) have emerged as key players, managing around USD 500 billion in assets and providing flexible financing to small and mid-sized businesses. BDCs offer benefits such as high income distribution and lower volatility compared to public equities. The S&P BDC Index tracks publicly traded BDCs, showcasing their performance and providing investors access to private credit markets. S&P Dow Jones Indices plans to introduce new offerings related to BDCs and private credit.
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