SS&C says private credit still has room to grow, but underwriting discipline faces rising scrutiny

SS&C analysis flags private credit growth headroom, with the asset class at about 10% of global corporate lending exposure. Market conditions look broadly resilient, though the sector has not faced a major economic downturn that would test underwriting discipline. Rising competition is pressuring documentation, with more borrower-friendly terms; covenant strength becomes as important as yield for LPs. Increased PIK usage is highlighted as a potential early warning signal of borrower stress before defaults show up in headline metrics. Evergreen structures are expanding, with the note warning liquidity promises must match the underlying illiquid loan assets. 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. SS&C Technologies Holdings Inc. published the original content used to generate this news brief on October 09, 2026, and is solely responsible for the information contained therein. (C)