Default Warnings Start to Pile Up in Private Credit Market (1)

Warnings on defaults are starting to pile up in the $1.7 trillion private credit market, prompting at least some analysts to raise concern about underappreciated risks in one of Wall Street’s favorite money spinners.

For years, losses have been contained by the fact that private credit firms have more room than many other investors to be patient with borrowers when times are tough. During the pandemic direct lenders granted companies more time to pay their obligations, often by negotiating behind the scenes with private equity owners.

But a number of analysts this month are holding up a light to underlying ...