medium · Private Credit & Debt portfolio-management-monitoring-workouts
A private credit fund holds a portfolio of 100 loans. The manager calculates the 'non-accrual rate' for the quarterly report.
If the total cost basis of the portfolio is $1,000,000,000 and the fair value is $950,000,000, and 4 loans with a total fair value of $38,000,000 are on non-accrual, what is the reported non-accrual rate?
- 4.0%
- 4.2%
- 3.8%
- 5.0%
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