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Ares and the BDC complex cut leverage after a covenant-lite scare

Business-development companies are still open for business. They would like a little more cushion first.

Priya NairFinance Reporter
Stacks of coins beside a growing plant

Stacks of coins beside a growing plant

NEW YORK — Business-development companies are still open for business. They would like a little more cushion first.

Two BDCs reduced statutory leverage after a sponsor-backed software credit tripped a maintenance test that had been written as if defaults were a 2020 problem.

Priya Nair

Finance Reporter

Writes on banks, private credit, and the regulatory perimeter around nonbank lenders.