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Private-Credit Defaults Match 2023 High in $300 Billion Index
Key Points
Private-Credit Defaults Match 2023 High in $300 Billion Index The default rate among private-credit borrowers has reached the highest in the roughly three-year history of an index from Kroll Bond Rating Agency LLC, adding to signs of stress in the $1.8 trillion industry. The trailing 12-month default rate in the KBRA DLD Direct Lending Index rose to 2.3% of issuers as of Monday, matching the highest level since the gauge’s December 2023 inception, according to data from the ratings and...
Private-Credit Defaults Match 2023 High in $300 Billion Index
The default rate among private-credit borrowers has reached the highest in the roughly three-year history of an index from Kroll Bond Rating Agency LLC, adding to signs of stress in the $1.8 trillion industry.
The trailing 12-month default rate in the KBRA DLD Direct Lending Index rose to 2.3% of issuers as of Monday, matching the highest level since the gauge’s December 2023 inception, according to data from the ratings and analytics company. The firm expects the rate to keep rising, ending 2026 at 3.5%, or roughly 111 issuers.