Bond Dealers Push Up Private Credit Fund Trading Costs Amid Software Slide

Bond dealers are driving up trading costs for private credit funds in February 2026, according to new market data. The surge follows a decline in software valuations, forcing dealers to widen bid-ask spreads to offset perceived risks in business development companies (BDCs). Market participants report liquidity constraints as institutional investors pull back, exacerbating volatility in BDC transactions. Analysts attribute the trend to broader economic uncertainty and reduced confidence in tech-adjacent credit instruments. Trading platforms note increased reliance on manual pricing models as automated systems struggle with illiquid assets.