Software exposure in private lending has been all over the financial press, and investors are right to ask about it. Ji He, Portfolio Manager at Muzinich & Co., addresses the concern head-on and works through what the exposure actually means for BDCI, including a worst-case stress test.
In this video, Ji He explains:
- What the Muzinich Public BDC Income Strategy’s actual look-through exposure to software is, and how it compares to the S&P BDC Index
- Why software businesses are attractive borrowers for Business Development Companies (BDCs) in the first place
- What the market is really worried about, and the role of AI disruption and refinancing risk
- A worked stress test: what happens to the portfolio in a deliberately severe scenario
- Why active management matters when sector-wide concerns arise
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