Proskauer’s non-public credit score default fee remained regular at 1.84 per cent within the third quarter of 2025, with the general image remaining “one in all power and resilience”.
The worldwide regulation agency’s newest Personal Credit score Default Index, which tracks senior secured and unitranche loans within the US, coated 705 loans representing $141bn (£105.8bn) in unique principal worth.
Learn extra: US non-public credit score default fee dips to five.2pc in July
Proskauer stated the index fee for the third quarter was “constant” with the second quarter determine of 1.76 per cent, and remained “considerably decrease” than default ranges within the broadly syndicated mortgage market.
“Whereas we’re seeing some motion in default charges, notably amongst bigger debtors, the general image stays one in all power and resilience,” stated Stephen A. Boyko, associate and co-founder of Proskauer’s Personal Credit score Group. “The market continues to mature, and this quarter’s findings underscore the significance of proactive danger administration and considerate structuring in navigating at the moment’s credit score setting.”
Learn extra: Morningstar: Default charges rising amongst center market issuers
The agency famous each will increase and reduces throughout the three EBITDA bands tracked by the index.
Defaults amongst corporations with EBITDA under $25m fell from 1.8 per cent within the second quarter of 2025 to 1.6 per cent within the third quarter of 2025. For these with EBITDA between $25m and $49.9m, defaults eased barely from 2.9 per cent to 2.6 per cent. Nevertheless, defaults amongst corporations with EBITDA of $50m or extra rose from 0.5 per cent within the second quarter to 1.2 per cent within the third quarter.
Learn extra: Personal credit score default fee falls for second consecutive quarter