Blackstone Secured Lending Fund (BXSL) Bank of America Financial Services Conference 2026 summary

Macro environment and origination trends

• Economic backdrop remains resilient with strong corporate earnings, robust consumer spending, and declining rates providing tailwinds.

• Q3 GDP growth accelerated, and Q4 data shows direct lending activity up over 50% quarter-over-quarter.

• Default rates in private credit declined by roughly 30% in 2025, indicating a healthy credit environment.

• Deal environment is achieving escape velocity after a challenging period, with expectations for continued improvement.

Funding, leverage, and liquidity management

• Average fund leverage is around 1.15x, ending leverage at 1.2x, with $2.5 billion in liquidity.

• Additional leverage and repayments are primary sources for funding new investments, avoiding dilutive equity raises.

• Joint ventures and other liquidity pockets are considered for diversification, but steady leverage and repayments are preferred.

Dividend policy and earnings outlook

• Dividend policy is closely aligned with earnings power to preserve NAV and avoid excessive risk-taking.

• As rates fall, higher leverage and normalized repayments support earnings stability.

• Dividend reductions are considered only if earnings power declines, with current focus on alignment between cost of capital and returns.