NEW YORK, January 26, 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 2.46% for the period of October 1, 2025 - December 31, 2025. The rate represents an increase from 1.84% in Q3 and 1.76% in Q2 2025.
This quarter’s Index encompasses 691 loans representing $144.5 billion in original principal amount.
“Although we saw a modest increase in defaults this quarter, the broader picture remains one of stability and resilience in private credit. As lenders navigate shifting macroeconomic conditions, we’re seeing a sector that is adapting well and managing through the bumps in the road.” said
Stephen A. Boyko, partner and co-founder of Proskauer’s Private Credit Group.
In companies with EBITDA of less than $25 million, defaults held steady (0.1% increase). For those with EBITDA of $25 million to $49.9 million, we observed a modest increase from 2.6% in Q3 2025 to 3.6% in Q4 2025. Companies with EBITDA equal to or greater than $50 million also rose to 2.4% in Q4 2025 from 1.2% in Q3 2025.
The Proskauer Index contains a comparison to default rates published by the rating agencies, 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.
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