So where do we stand now. You've warned about underwriting. How poor does it look.Sure. So I think what we're starting to see is just a normalization in the space for far too long. There was lax underwriting standards in direct lending and with too much leverage put on companies that really didn't need that much leverage on them.What we're seeing is not really a crisis, though. What we're seeing is, is a cooling in this market. And what we're seeing is a move in default rates from low single digits, call it ...

Marathon Asset Management is staying away from software for now as its chairman Bruce Richards predicts default rates of around 15% for two coming consecutive years https://t.co/GVTGHm0Bpn ...

Group 1 - UBS strategists predict that private credit default rates could increase by 15% if there is significant disruption among corporate borrowers [1] - Citron Research warns that the rise in private credit issues could lead to a double-digit unemployment rate in the U.S. by 2025 [1] - There is a growing number of critical voices regarding private credit, indicating a shift in sentiment within the industry [2][3] Group 2 - Default rates in private credit are complex due to the bilateral nature of transactions, allowing for renegotiation of terms [4] - Recovery rates in private credit are a key focus, as they may outperform those in syndicated markets due to greater control in negotiations [4] - The perception of private credit's impact on software as a service companies could affect pricing and default rates [5] Group 3 - The current market remains relatively stable, but investor sentiment is influenced by potential shifts in technology and its effects on private credit and private equity [6][7] - There is an expectation of a 50 to 100 basis points increase in certain credits that may struggle to demonstrate long-term health [8]

Risk Assessment - UK commercial real estate alternative lenders' default rates exceeded 20% in H1 [1] Industry Analysis - Bayes Business School survey reveals elevated risks in alternative lenders' portfolios [1]

Signs of elevated stress are emerging within the $1.7 trillion private credit market as default rates are rising and more borrowers are choosing to defer cash interest payments, according to a Bank of America report https://t.co/HGiJn8F0Xr ...

Market Risk Assessment - Default rates of bonds and leveraged loans are becoming harder to predict [1] - Increased debt restructuring by companies makes accurate risk assessment difficult for investors [1]

Core Viewpoint - Affirm (AFRM) is causing concern among stock market investors due to a reported increase in default rates among borrowers [1] Group 1 - Affirm's stock price was noted at 15.80% during the afternoon of May 9, 2025 [1] - The video discussing this issue was published on May 11, 2025 [1]