KBRA Direct Lending Deals: News & Analysis – 4/1/2024

Defaults: Rates steady, but signs point to increases later this year


Direct lending defaults and non-accruals are low, yet other key measures suggest there’s room for growth in both segments later this year and into 2025. Some expect fragile assets to start crumbling by the second half of 2024—there’s not much runway left after an 18-month stretch of rising interest, higher labor costs and price increases.