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15 handpicked stocks

Banks in Private Credit

This carefully selected group of stocks captures the trillion-dollar shift as traditional banks enter the private lending arena. Our professional analysts have identified key Business Development Companies (BDCs) and specialized funds that stand to benefit from this growing financial trend.

Author avatar

Han Tan | Market Analyst

Published on July 15

Your Basket's Financial Footprint

Summary of market capitalisation breakdown for the 'Banks in Private Credit' basket.

Key Takeaways for Investors:
  • Large-cap dominance suggests generally lower volatility and more market-like performance, reducing idiosyncratic risk.
  • Suited as a core, long-term holding within a diversified portfolio—not a speculative, short-term growth play.
  • Expect steady, income-orientated returns over time rather than rapid, explosive upside; growth will likely be gradual.
Total Market Cap
  • BXSL: $6.09B

  • GSBD: $1.13B

  • GBDC: $3.75B

  • Other

About This Group of Stocks

1

Our Expert Thinking

Traditional banks are increasingly moving into private credit, creating a major shift in how businesses get loans. This trillion-dollar market involves direct lending to companies outside public markets, blurring traditional boundaries and creating new opportunities for specialized lenders and investors seeking income.

2

What You Need to Know

This collection focuses on Business Development Companies (BDCs) and specialized credit funds that either partner with banks or compete against them. These companies typically offer higher yields than traditional investments, as they provide loans to small and medium-sized businesses that may not have access to conventional financing.

3

Why These Stocks

We've selected the key players positioned to benefit from this evolving market, including established BDCs, credit funds from major financial institutions, and ETFs providing broader exposure. These companies are at the forefront of an important structural change in corporate lending that could reshape financial markets.

Why You'll Want to Watch These Stocks

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Income Potential

BDCs typically offer higher yields than traditional investments, often paying substantial dividends that could enhance your portfolio's income stream as interest in private credit grows.

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Banking's Big Shift

You're witnessing a trillion-dollar transformation in how businesses get funded. This structural change in corporate lending could create winners and losers as traditional boundaries blur.

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Growing Market Opportunity

The private credit market is expanding rapidly as more companies seek flexible financing outside traditional channels. Early investors in this trend could benefit from both growth and income.

Get the full story on this Basket. Read our detailed article on its risks and potential.

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