Private Credit: Lending to NDFIs slows, BDC valuations, and MFS losses

This episode is an update on Private Credit. The failure of U.K. mortgage lender MFS continues to ripple through markets as banks and financial firms in the U.K. and the U.S. sustain losses. Investors should be very careful about buying shares of Business Development Companies (BDCs) because what may seem like a bargain but could be a disaster. Banks lending to NDFIs decreased in the 1Q of 2026. Regulators required the largest banks to start disclosing their exposure to NDFIs at the end of 2024. NDFI lending is broken down into 5 categories. Regulators are considering if banks should disclose additional information around NDFI lending as the bulk of lending is concentrated in the largest U.S. banks. This episode examined three articles from CNBC, The Wall Street Journal, and S&P Global.