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Private Credit Boom Ends as Defaults Hit Record 6%

6/5/2026

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Story summary
  • Speakers at the Bloomberg Global Credit Forum warned the private-credit boom is ending and defaults will rise.
  • Holly Kim, founding partner of Glendon Capital Management, said loss-given-default rates will rise as higher rates drive defaults.
  • Fitch Ratings reported the sector’s default rate hit 6% at the end of April, a record high.
  • Scott Goodwin, co-founder of Diameter Capital Partners, said the firm will buy distressed software loans at discounts.