BDCs Trade at Near-Historic Discounts Despite Overstated Risk Fears

Analyst warns of 'GFC 2.0' and 'SaaSpocalypse' impacting private credit markets

Mar. 16, 2026 at 6:19pm

Got story updates? Submit your updates here. ›

According to financial analyst Roberts Berzins, the market has assumed a 'seek-and-destroy' mode in relation to private credit, with almost weekly fresh concerns being raised to scare investors away from the space. Berzins, a CFA charterholder with over a decade of experience in financial management, argues that the risks facing the private credit market are overstated, and that BDCs are currently trading at near-historic P/NAV discounts despite this.

Why it matters

The private credit market is an important source of financing for many businesses, and concerns about its health can have broader implications for the economy. Berzins' analysis suggests that investors may be overreacting to the perceived risks, potentially creating opportunities for those willing to look past the headlines.

The details

Berzins, who has made significant efforts to institutionalize the REIT framework in Latvia and has worked on policy-level initiatives such as developing national SOE financing guidelines, believes that the market's 'seek-and-destroy' mode in relation to private credit is unwarranted. He argues that the risks facing the industry, such as the 'cockroaches', 'SaaSpocalypse', and now the threat of a 'GFC 2.0', are being overstated, leading to BDCs trading at near-historic P/NAV discounts.

  • The article was published on March 16, 2026.

The players

Roberts Berzins

A financial analyst with over a decade of experience in financial management, helping top-tier corporates shape their financial strategies and execute large-scale financings. He is a CFA charterholder, ESG investing certificate holder, and has had an internship at the Chicago Board of Trade.

Got photos? Submit your photos here. ›

What they’re saying

“It seems that the market has assumed a seek-and-destroy mode in relation to private credit. Almost every week brings something fresh for the bears so that they can keep roaring and scare investors away from the private credit space.”

— Roberts Berzins, Financial Analyst

The takeaway

Berzins' analysis suggests that investors may be overreacting to the perceived risks in the private credit market, potentially creating opportunities for those willing to look past the headlines and focus on the fundamentals. His experience and expertise in the financial industry lend credibility to his perspective on the current state of the market.