Private credit default rates rise in fourth quarter — Proskauer

Fourth-quarter private credit defaults increased to 2.7% from 2% the previous quarter, according to Proskauer’s Private Credit Default index that tracks senior secured and unitranche loans in the U.S. The default rate has fluctuated from quarter to quarter.

The largest default rates have generally come from companies with EBITDA of $25 million to $49.9 million. In the fourth quarter, the default rate among these firms was 4.7% compared with 1.8% for those with EBITDA less than $25 million and 1.7% for companies that had EBITDA of at least $50 million.

Recommended for You
Stacked blocks that have DEI on the side and Diversity, Equity and Inclusion written on the front.
Anti-DEI push comes, and progress plateaus
Harvard University’s large endowment could buffer federal government cuts
Harvard University’s large endowment could buffer federal government cuts
Most pension plans are overallocated to private equity
Most pension plans are overallocated to private equity