Fair-Value Measurement

Fair-value measurement is estimating the price at which an asset could be sold in an orderly transaction between market participants at the measurement date. For private loans, the estimate often relies on judgment and may differ from eventual proceeds.

Why this matters to income investors

Fair-value changes affect a BDC’s net asset value and can signal credit stress before a loan stops paying. Estimates are not guaranteed sale proceeds.

How to use fair-value measurement in your research

Read how the company valued the asset and whether the figure came from a market quote, model, or management estimate. Compare valuation changes with realized cash flows and the latest earnings report.

This material is general education and information, not individualized investment, tax, or legal advice.