Monitor portfolio · PCT-065 · Sourced card
Non-accrual watch by BDC
An LP or BDC analyst wants each BDC's reported non-accrual rate set against an independent read from the Schedule of Investments and the PIK share of income, the day the 10-Q lands.
Today vs automated
- Open each 10-QAnalyst · manual
- Find non-accrual notesAnalyst · manual
- Rebuild ratios in ExcelPM · manual, re-keying
- Email / meeting hand-offAnalyst → PM
- A BDC files its 10-QTrigger: starts on its own
- Pull reported ratesAutomated · Document store
- Compute an SOI checkAutomated · LLM
- Flag the gapsAI draft, human review · Monitoring model
- What the gap between reported non-accruals and deep marks means for a given managerApprove / override · PM
AutomatedAI draft, human reviewHuman onlyTools: Inbox / portal, Document store, LLM, Monitoring model, Loan system
Estimated valueestimate
12–210 analyst hours a year
$2k–$52k of time, vs an assumed $10k–$40k tool cost
Net: −$38k to $42k a year net of tool cost; at the low end of the assumptions it does not cover the tool cost.
Assumptions
- 4–8 analyst hours per quarterly review today; 0.5–1 hours with an agent, including review
- 4–28 quarterly reviews a year for one team
- $150–250 per hour loaded cost
- Tool or build cost $10,000–40,000 a year (in-house)
Estimate, based on the assumptions shown; your numbers will differ. How we estimate
What else it can do for the team
- Flag gaps between reported and computed rates
- Track trend by manager
- Feed into LP research
- Draft the earnings-season note
- Alert on new non-accruals in names you hold
How you get thereFour steps from prompting to an agentic workflow; most teams start at step 2.
Needs: an approved AI tool, a confidentiality policy.
Risk: unchecked answers, data pasted outside policy.
Needs: field definitions, a template, document parsing.
Risk: breaks silently when formats change.
Typical starting point
Needs: inbox/doc-store access, system write-back, logging.
Risk: acting on a misread; needs review gates.
The automated lane above
Needs: shared data model, permissions, audit trail, exception queue.
Risk: errors compound across steps; needs monitoring.
Solution optionsBuy (2 vendors listed), build or hybrid, with the trade-offs of each.
An LLM API, a document parser, a vector or document store, your data warehouse, and a review queue.
Fits your definitions exactly; you own maintenance and controls.
Vendor extraction feeding your own checks, templates and systems.
Common middle path; two things to integrate and govern.
Listing is not endorsement.
What changes for the team4–8 h → 0.5–1 h per quarterly review (estimate); coverage goes from a sample of borrowers, quarterly to every borrower, every delivery.
How it works
Full title: BDC non-accrual watch: reported rates vs what the Schedule of Investments implies
“OBDC's non-accruals: 2.8% at cost, 0.8% at fair value. The SOI shows where that gap sits.”
Scenario
Public: an LP or BDC analyst wants each BDC's reported non-accrual rate set against an independent read from the Schedule of Investments and the PIK share of income, the day the 10-Q lands.
What the human still decides
What the gap between reported non-accruals and deep marks means for a given manager. The agent reports the numbers, not a view.
Why it matters
ARCC's non-accruals rose to $708m, up 15% from Q1 (Bloomberg). OBDC's rose to 2.8% of cost from 2.0%, while falling to 0.8% at fair value.
What the record shows
Checked 2026-10-16.
Reported non-accruals rose in Q2 2026: ARCC to 2.4% of cost (1.4% at fair value), $708m and up 15% on Q1 per Bloomberg; OBDC to 2.8% of cost from 2.0%, but only 0.8% at fair value. A crude independent read from the reconciled SOIs lands close: rows marked below 50% of cost are 2.81% of OBDC's cost ($424m) and 2.08% of ARCC's ($618m), though that screen also catches equity. PIK interest was 7.2% of ARCC's H1 2026 gross investment income ($110m of $1,531m), 7.9% of OBDC's and 8.7% of HTGC's; BCRED and MAIN don't tag PIK income in XBRL, so their ratio needs the 10-Q text.
Try it: prompt and data
For {BDC}'s 30 Jun 2026 10-Q: report non-accruals at cost and fair value from the earnings release; compute the cost of SOI rows below 50% of cost as a share of total cost; compute PIK interest income ÷ gross investment income from XBRL. Show each figure with its source link.Data
Public inputs only (SEC/EDGAR filings, published reports, public news). Every figure is cited.
Who uses it, vendors and build
- Segments
- BDCs, Research & ratings
- Who uses it
- LP / credit research, Credit analyst
- Build
- Buildable in-house
- In-house
- Uses the reconciled SOI file plus XBRL company facts. Estimate: 2–3 days.
- Last verified
- 2026-10-15
Vendors that claim this capability
Tags reflect each vendor's own public claims at the linked page (checked 2026-10-15). Not tested, ranked or endorsed.
Sources and related
Next step
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Not investment advice. Names marked SAMPLE are fictional. Found an error? See the corrections log.