Private credit default rates have fallen for the second quarter running, dropping to 1.76 per cent for the period of 1 April 2025 to 30 June 2025, new figures show.
According to Proskauer’s Private Credit Default Index, the rate is lower than that in the first quarter of this year, when it was at 2.42 per cent, and the final quarter of 2024, when it was at 2.67 per cent.
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“The decrease in default rate from Q1 2025 to Q2 2025 remains consistent with the trend in the broadly syndicated market,” the report said.
The index encompassed 739 loans representing $143.6bn (£106bn) in original principal amount.
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“This quarter’s data reinforces what we’ve continued to see: resilience across private credit markets,” said Stephen A Boyko, co-founder of Proskauer’s private credit group.
“While there was a slight uptick in defaults among smaller companies, the overall downward trend signals effective risk management and stability across the sector. As capital continues to flow and lenders remain disciplined, the market is demonstrating its ability to navigate evolving macro conditions.”
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