defaults rose to 5.3%, net loss of $61M, new lending halted.
MFIC's loan defaults rose to 5.3% in Q1, posting a net loss of $61 million, and the fund has largely stopped new lending, redirecting proceeds to buybacks and debt reduction.
Loan defaults climbed from 3.9% to 5.3%, forcing a $61 million net loss. The fund stopped new lending and instead uses payment proceeds for share buybacks and debt reduction, signaling stress typical of a BDC in trouble.
"Private Credit Default Rates Just Hit The Point Of No Return"