The private credit market just had its worst quarter in years. New loan issuance plummeted roughly 40% to $44.76B for the three months ending May 2026, down from $74.56B in Q1.
The numbers paint a grim picture
The $44.76B in new issuance during the three months through May represents a dramatic contraction from the $74.56B booked in Q1 2026.
Fundraising tells a similar, if slightly less dramatic, story. Private credit funds pulled in $45B in commitments during the first four months of 2026, according to Preqin data. That’s essentially flat compared to $44.5B during the same stretch in 2025. For context, the same period in 2023 saw $52.2B in commitments.
The real alarm bell is defaults. Fitch reported that the US private credit default rate hit a record 6.0% in April 2026. Consumer products and healthcare sectors have been particularly hard hit.
