Seeking Alpha
27 Oct 2026, 06:47 UTC · 1h ago
Ares Capital: Hold On Marked Down Loans Ahead Of Earnings
Impact · against what's priced in
The markdown of Cornerstone OnDemand loans is a negative signal for ARCC's software portfolio quality, but it serves as a cautionary indicator rather than a systemic collapse. The primary risk remains whether this instance triggers a broader rise in nonaccruals or a dividend cut, both of which would drive the stock lower.
- ARCC−0.30
No priced-in read yet
- In context
The markdown of loans to Cornerstone OnDemand to 64% of cost highlights risks from AI-era competition in software portfolios, potentially threatening the 10.3% yield if nonaccruals rise above 3%.
Read from the article alone
