Private credit defaults hit record high as interest rates soar

Defaults in private credit have been reaching record highs, and fund redemptions have exceeded inflows in some of the sector's riskiest segments. But the troubles in private equity could be just getting started as yields in bond markets around the world climb to the highest level in years, forcing loan refinancings at higher rates. The yield on the 10-year U.S. Treasury note climbed above 4.68% on Tuesday, the highest since January 2025. …