Goldman Sachs Asset Management reports that non-payment rates in the U.S. private credit market remain exceptionally low, signaling robust credit quality and continued resilience in leveraged lending. The findings support sustained investor confidence in high-yield debt and influence broader fixed income and equity dynamics.
- Private credit non-payment rates at 0.8% over the past 12 months, down from 1.0% a year ago
- Low default levels signal strong credit quality resilience despite macro headwinds
- LQD ETF up 1.7% over 30 days amid improved investor confidence in credit markets
- ^VIX index below 16, reflecting low market volatility and stable risk sentiment
- CL=F crude oil futures trading in a narrow range, indicating limited stress in commodity-linked loans
- Disciplined underwriting and covenant protections are key drivers of low default performance
Private credit non-payment rates in the United States have stabilized at 0.8% over the past 12 months, according to an internal analysis by Goldman Sachs Asset Management. This figure marks a 20 basis point decline from the 1.0% rate observed in the same period a year earlier and represents one of the lowest levels in over a decade. The data reflects strong underlying performance across private loan portfolios, particularly in middle-market and leveraged transactions. The low default trend is attributed to disciplined underwriting standards, conservative leverage metrics, and strong operating cash flows among borrowers. Despite macroeconomic headwinds such as elevated interest rates and persistent inflation, private credit lenders have maintained tight covenant structures and active monitoring protocols, limiting credit deterioration. These factors have preserved asset quality even as broader corporate bond markets have seen modest upticks in distress signals. In credit markets, the stability of private credit has reinforced demand for high-yield instruments. The LQD ETF, which tracks investment-grade corporate bonds, has seen a 1.7% rise in value over the last 30 days, while the ^VIX index has remained below 16, indicating subdued volatility. Meanwhile, CL=F crude oil futures have traded within a narrow range, suggesting limited stress in commodity-linked credit exposures. The resilient performance of private credit is benefiting a range of stakeholders, including institutional investors, private equity sponsors, and banks with loan origination platforms. As credit quality holds firm, risk appetite across leveraged finance and real asset-backed lending remains elevated, supporting continued capital deployment in sectors such as infrastructure, healthcare, and commercial real estate.