I’m a big believer in private credit, but trying to sanity check my bias before allocating more to public market proxy exposure like BDCs and listed private credit platforms.
Feels like the space has shifted from a real bank dislocation trade into something more crowded, with tighter spreads, more PIK usage, and rising scrutiny around underwriting quality.
At the same time, banks still have not fully retaken the middle market, so the structural case remains and capital keeps flowing in.
Curious how people see the long term here. Is this a durable shift in how credit is intermediated, or a cycle where returns get competed away and weaker vintages get exposed in a downturn.