BDCs are the new CLOs

Change my mind...

I’m seeing private credit lenders commit to deals with basically just a CIM and 3 day turnarounds. Effectively no covenants (set at like 9.0x) and basically taking terms as given. They want to do $500mm+ deals at effectively syndicated debt rates (when blending senior/junior structure into “unitranche”)

Is there no barrier to entry anymore? It seems like the yield will all compress into CLO type paper sooner or later

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