Our chart of the week shows that private credit default rates have remained relatively stable over the past several years, even as market commentary has turned more cautious. The chart illustrates that private credit defaults are currently near 2%, closely aligned with the experience of high‑yield bonds across recent periods. Private credit, much like high‑yield bonds, provides financing to companies with higher risk profiles that fall below investment‑grade. While attention has been drawn to isolated bankruptcies and software related risk exposures, these themes have not yet translated into a broad rise in realized defaults. Viewed alongside high-yield debt, the data suggest private credit has been behaving like other forms of sub‑investment‑grade credit in terms of credit outcomes. For investors, this comparison may be useful in framing private credit as a familiar source of higher‑risk credit exposure, albeit with different liquidity features that warrant separate consideration.
Chart of the Week – April 27, 2026
Our chart of the week shows that private credit default rates have remained relatively stable over the past several years, even as market commentary has turned more cautious. The chart illustrates that private credit defaults are currently near 2%, closely aligned with the experience of high‑yield bonds across recent periods. Private credit, much like high‑yield bonds, provides financing to companies with higher risk profiles that fall below investment‑grade. While attention has been drawn to isolated bankruptcies and software related risk exposures, these themes have not yet translated into a broad rise in realized defaults. Viewed alongside high-yield debt, the data suggest private credit has been behaving like other forms of sub‑investment‑grade credit in terms of credit outcomes. For investors, this comparison may be useful in framing private credit as a familiar source of higher‑risk credit exposure, albeit with different liquidity features that warrant separate consideration.
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