Ryan | Plume(@ryanxwen):Per Moody’s, private credit “reported defaults” are 4.0%. Yet their actual “credit stress group” which includes PIK amendments and maturity extensions is 5.8% - about 45% higher. PIK is where companies elect to pay interest in equity, instead of cash, usually when cash is tight. This is the REAL default rate. The number you’re being quoted and the number that matters are not the same number. Question everything. The real teams who understand these assets will have answers. Those larping, will not.

2026.10.19 15:40

Per Moody’s, private credit “reported defaults” are 4.0%. Yet their actual “credit stress group” which includes PIK amendments and maturity extensions is 5.8% - about 45% higher. PIK is where companies elect to pay interest in equity, instead of cash, usually when cash is tight. This is the REAL default rate. The number you’re being quoted and the number that matters are not the same number. Question everything. The real teams who understand these assets will have answers. Those larping, will not.