Northleaf Says Higher Base Rates Lift Private Credit Yields in Q3

• Northleaf Capital Partners’ Q3-2026 analysis, published November 2, reported subdued private credit issuance as weak M&A/LBO activity constrained lending.
• The Fed raised rates 25 basis points in September to 3.75%-4%, lifting contractual cash yields on floating-rate loans.
• U.S. credit spreads stabilized following first-half widening; private credit retained an approximately 150-basis-point premium over public credit.
• Redemption requests at 11 of the 14 largest U.S. non-traded BDCs averaged approximately 13%, exceeding the typical 5% quarterly limit.
• Borrower performance remained broadly resilient, with stress concentrated in select borrowers, consumer-facing industries and 2021 vintages.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Northleaf Capital Partners Ltd. published the original content used to generate this news brief on November 02, 2026, and is solely responsible for the information contained therein.