Mim q2 2026 private credit quarterly review outlook

PRIVATE FIXED INCOME | Q2 2026

Investment Grade Private Credit Quarterly Review and Outlook

Introduction Private markets remained active through the first half of 2026, supported by strong origination volumes, broad investor participation and relative value opportunities across multiple asset classes. Activity reflected continued demand for financing solutions across sectors including digital infrastructure, renewable energy and specialty finance. While economic uncertainty and sector-specific risks remain areas of focus, current market conditions continue to support opportunities for disciplined investors to selectively deploy capital in transactions offering attractive risk-adjusted return potential and structural protections.

Corporate private placements Asset-based finance Market activity Market activity ▪ 2026 origination is on pace for a new all-time ▪ The asset-based finance (ABF) market remains annual record, already surpassing $100 billion. strong despite tight valuations.

▪ Market globalization continues, reinforcing ▪ Private ABF issuance remained robust in Q2, U.S. private placement (USPP) as a core global supported by strong investor demand across funding channel. sectors, while ABF spreads tightened by 10-15 bps QoQ and reached multiyear tights. ▪ Private placements continue to offer attractive relative value despite spread compression in ▪ Demand for Fund Finance and Energy Proved public markets. Development Producing (PDP) continued to deepen, driving spreads into the low-200s bps area and, in some cases, the high-100s, while MIM year-to-date 2026 pricing differentiation between top-tier and lower- investment activity tier issuers narrowed. ▪ MIM closed 98 transactions totaling $4.66 billion at an average spread of +143 bps. MIM year-to-date 2026 ▪ Transactions had a weighted average life of 10.6 investment activity years, 5.70% yield and average rating of MA3. ▪ MIM closed 24 transactions totaling $4 billion in ▪ Activity was well-diversified by sector with total at an average spread of +220 bps. consumer non-cyclical and REITs being the ▪ Transactions had a weighted average life of 6 largest contributors. years, 6.22% yield and average rating of MA1.

▪ We evaluated over $30 billion of new investment Market outlook opportunities during Q2 and remained selective, ▪ Fundamentals remain constructive with strong passing on opportunities that did not meet risk- deal flow, attractive spread premiums over public adjusted return or collateral quality standards. markets and structural protections that will drive ▪ We continued to focus on higher-quality consumer attractive opportunities. credit exposures and transactions with strong ▪ Despite ongoing concerns about the overall structural protections, while actively structuring economy and risks in specific sectors, recent several consumer whole loan securitizations headlines appear to reflect isolated issues rather targeted to close in Q3. than broader market-wide problems.

▪ Strong market activity continues to create attractive investment opportunities. Through direct sourcing, MIM continues to seek unique opportunities that offer enhanced returns and stronger protections against downside risk.