US private credit defaults to ease in 2026, but fragility to persist, says BofA

Core Viewpoint - Private credit defaults are expected to decrease next year as interest rates decline, according to strategists at BofA Global Research, but the sector remains one of the most vulnerable areas in the U.S. credit market [1] Group 1 - The anticipated drop in private credit defaults is linked to a decrease in interest rates [1] - The private credit sector is characterized as "red-hot," indicating high activity and interest, yet it is also described as fragile [1]