Signs of elevated stress are emerging within the $1.7 trillion private credit market as default rates are rising and more borrowers are choosing to defer cash interest payments, according to a
Private debt default rates remain higher than those in public credit, analysts wrote in the Thursday report, though metrics vary widely depending on datasets.
Realized losses across business development companies — a popular vehicle for private credit funds — hit more than $1 billion in the second quarter, the highest dollar value since the pandemic, Bank of America said in its report. Losses have ...