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"path": "/2026/03/history-rhyming.html",
"publishedAt": "2026-03-09T00:09:00.001Z",
"site": "https://40yrs.blogspot.com",
"tags": [
"private credit defaults in the United States hit 9.2% in 2025",
"money market funds \"Breaking the Buck\" in 2008"
],
"textContent": "The fact that private credit defaults in the United States hit 9.2% in 2025, sounds a lot like the leadup to money market funds \"Breaking the Buck\" in 2008.\n\n> The default rate among U.S. corporate borrowers of private credit rose to a record 9.2% in 2025, according to a report Friday by credit rating agency Fitch Ratings.\n>\n> In its monitor of 302 companies with outstanding private credit debt, Fitch recorded 38 defaults among 28 different borrowers. The 9.2% default rate in 2025 follows a previous record 8.1% rate of defaults in 2024.\n>\n> Smaller issuers with $25 million or less in earnings made up the majority of last year's defaults, which were diversified among sectors, according to the report.\n>\n> ………\n>\n> Most of the private credit loans were floating rate and tied to the federal funds rate, which has persisted at a high level over the past three years. Fitch pointed to this as a catalyst for last year's defaults.\n\nThere are a lot of companies out there who could only service their debts when rates were near 0%.\n\nThey are now insolvent, and there is a non-zero chance that this will take down the private credit firms.\n\nThis is not good.",
"title": "History Rhyming",
"updatedAt": "2026-03-09T06:04:17.675Z"
}