Private Credit Is In Turmoil - Here's My Method And The Picks I Trust

Ares Capital Corp. (ARCC) and Capital Southwest Corp. are top BDC picks, offering >10% yields, skilled management, and strong financials. Low leverage and above-average ROE, not P/NAV discounts, are critical for BDC selection and risk mitigation. Current market fears around private credit stem from asset quality doubts, leverage risks, and potential systemic contagion.