According to @lisaabramowicz1, private credit is taking a big hit from its software exposure, citing Barclays as the source. Barclays data shows software now accounts for about 20% of BDC investments, up from around 10% in 2016, source: Barclays via @lisaabramowicz1. Given this concentration reported by Barclays via @lisaabramowicz1, traders in BDC equities and loans should closely track portfolio updates for software-related non accruals and realized losses.

According to Eric Balchunas, Simplify has filed for a Private Credit strategy ETF that will allocate 80% of assets to Business Development Companies (BDCs) and Closed-End Funds (CEFs), with the remaining 20% used for credit derivatives hedging via total return swaps (source: Eric Balchunas, Twitter). This balanced exposure offers traders an accessible vehicle to tap institutional-grade private credit yields while managing risk through sophisticated derivatives, which could attract both yield-seeking investors and crypto market participants aiming for diversification. The ETF structure may increase liquidity and transparency in private credit, potentially influencing correlated DeFi lending protocols and tokenized credit products.