The Private Credit Default index, published by law firm Proskauer, fell to 1.41% in the third quarter. That's down from 2.15% and 1.64% in the first and second quarters, respectively. The index includes U.S. senior secured and unitranche loans, and the default rate is based on the number of loans.
Private credit defaults decreased
The lower quarterly default rate was driven by companies with less than $25 million of EBITDA, which dropped to 0.7% from 2.1% in the second quarter. Firms with $25 million to $49.9 million saw a 90-basis-point increase to 2.5%, and those with more than $50 million had a 40-basis-point increase to 1.2%