Morgan Stanley Sees Private Credit Stabilization After 2Q Earnings

Dow Jones01:32

Private credit funds' second-quarter earnings should create some stabilization, at least in the near term, Morgan Stanley analysts write in a note. They point out some bright spots: market access for business development companies has improved, software loans are remaining resilient, and there's a balanced inflow-outflow picture despite continuing headlines about redemption requests and caps. "We expect 2Q earnings to signal stabilization rather than continued deterioration, as we believe valuations reflect much of the bearish narrative," the analysts write. "From here, the focus shifts to the durability of that stabilization: whether improving market conditions persist through the earnings cycle, or whether underlying pressures-particularly around liquidity, asset quality, and the risk of AI-driven disruption-resurface."

(elias.schisgall@wsj.com)

(END) Dow Jones Newswires

July 13, 2026 13:32 ET (17:32 GMT)

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