Given media attention on software debt lately, you'd expect default rates to look a lot worse than they do. Funny thing for a private credit crisis: default rates went down. If software lending were half as bad as the commentary suggests, the default data would probably look much worse.
The latest Proskauer Private Credit Default Index reported a 2.51% default rate in Q2 2026, down from 2.73% in Q1. Despite ongoing economic uncertainty, default rates remain within the range observed over recent quarters.
One data point that stood out: software and technology defaults remained stable, even as the sector continues to receive significant investor and media attention.
It's a useful reminder that defaults are a normal part of any lending market. The key question isn't whether defaults exist, but whether they remain manageable relative to historical experience and whether lenders are being compensated appropriately for the risks they take.
So far, the data suggests the private credit market continues to demonstrate resilience rather than deterioration.
Private Credit Default Index - Proskauer
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.