Private Credit Investors Need to be Alert to Risks of Rising Default Rates
Dow Jones
Jul 14
1051 GMT - Investors need to alert to whether a rising default rate in private credit could cause systemic risk to rise in the economy, potentially sparking recession and a rise in default rates for all asset classes, Mediolanum International Funds Limited's Martin Reeves says in a note. Reeves doesn't expect this risk to materialize, however. "Unless we hit a material downturn, then the rise in default rates within private credit will likely be contained to within that sector," the head of high yield fixed income says. Though this will cause pain for some investors in alternative asset classes and on a few insurance company balance sheets. (emese.bartha@wsj.com)
(END) Dow Jones Newswires
July 14, 2026 06:51 ET (10:51 GMT)
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