Default rates are hitting recent highs, Journal says
Private credit is showing increasing signs of stress, according to The Wall Street Journal, even as top fund managers offer optimistic commentary about the market.
The Journal analyzed quarterly reports from some of the most-watched funds. That review found that the health of the loans and returns for investors are worsening, the newspaper reported.
Separately, default rates in private credit are hitting recent highs, according to the Journal. The report did not provide a specific default rate in the supplied account.
The fund managers’ comments come as they try to move past a year of turmoil, the Journal reported. The source account describes the managers’ commentary as optimistic but does not identify the fund managers or provide their individual statements.
The Journal’s findings concern the funds included in its quarterly-report analysis. They show worsening loan health and investor returns in those reports, while the broader account also points to recent highs in default rates across private credit.
The private-credit report was included in a Wall Street Journal newsletter covering its reporting and analysis. The same newsletter also discussed voter dissatisfaction with the economy, a record 24 million American trips to Europe in 2025, rising San Francisco-area rents and renewed shared interest in popular entertainment.