NEW YORK, April 27, 2026 – Proskauer today released its latest Private Credit Default Index (the "Index"), which tracks senior-secured and unitranche loans in the United States. The Index revealed a default rate of 2.73% for the period of January 1, 2026 - March 31, 2026. The rate represents an increase from 2.46% in Q4 2025 and 1.84% in Q3 2025.
This quarter's Index encompasses 697 loans representing $189.2 billion in original principal amount.
"The first quarter reflects a continuation of the modest upward trend in defaults that began in mid-2025," said Stephen A. Boyko, partner and co-founder of Proskauer's Private Credit Group. "While there are signs of pressure in certain segments, overall levels remain relatively contained and continue to track below those in the broadly syndicated loan market. We are closely monitoring developments across borrower cohorts and across sectors. Despite concerns about the performance of loans in the software and technology sector, default rates in that industry have remained relatively stable."
In companies with EBITDA of less than $25 million, we observed a modest increase from 1.7% in Q4 2025 to 2.3% in Q1 2026. For those with EBITDA of $25 million to $49.9 million, we observed a modest decrease from 3.6% in Q4 2025 to 3.1% in Q1 2026. Companies with EBITDA equal to or greater than $50 million rose to 3.0% in Q1 2026 from 2.4% in Q4 2025.
The Proskauer Index contains a comparison to default rates published by the rating agencies, a principal- weighted default rate, historical trends by industry and EBITDA bands, defaults by type, defaults in cov-lite loans, and defaults by year of origination. The full report is available only to the Firm's direct lending clients.