Private-Credit Defaults Match 2023 High in a KBRA Index (opens original article in a new tab)

Private-credit default rates hit a three-year high according to KBRA, with expectations of further increases and declining recovery rates for smaller borrowers.

• Private-credit default rate reached 2.3% in KBRA index, matching 2023 high
• KBRA expects default rate to rise to 3.5% by 2026
• Implied recovery rates for small/mid-sized borrowers are forecast to drop from 46% to 36%