Submitted by QTR's Fringe Finance
While Wall Street remains preoccupied with unfolding shitshow in tech and AI right now, there’s another little problem quietly developing beneath the surface from a sector I’ve been warning about nonstop for 2 years: private credit defaults just hit a record high.
According to Forbes, citing Fitch Ratings’ latest third-quarter private credit report, the U.S. private credit default rate climbed to 6.3% over the trailing 12 months, up from 6.0% in the previous quarter. It’s the highest reading in Fitch’s series, which has now deteriorated for five consecutive quarters.
Fitch recorded 27 default events in the third quarter alone, compared with 20 in the second quarter, bringing the trailing annual total to 91 unique borrowers.
But check this out…roughly 88% of those defaults involved some form of restructuring rather than an outright bankruptcy. Lenders are allowing struggling borrowers to defer interest, capitalize unpaid interest into additional deb
