This is the canary in the coal mine for the whole credit market. Private credit was supposed to be safer than banks but defaults keep climbing. When easy refinancing ends the real pain starts. Watch for more blow ups in 2026 and 2027.
- Fitch reports U.S. private credit default rate at 6.0% for trailing twelve months through May 2026.
- This is the highest level since tracking started in 2024.
- Rate stayed flat from April but marks new record.
- Many defaults involve payment deferrals or PIK toggles instead of cash misses.
- Smaller and middle market borrowers hit hardest.
Fitch private credit default report https://www.fitchratings.com/research/corporate-finance/fitch-ratings-us-private-credit-default-rate-remains-at-record-high-6-0-in-may-2026-15-06-2026