Goldman Sachs (NYSE:GS) co-head of private credit Vivek Bantwal believes that it’s important to “separate anecdotes from the data,” noting that a handful of stressed situations across bank lending, public credit, and private credit have received outsized attention in recent months.
“When you step back and look at the data, you see a bit of a different picture,” Bantwal told CNBC, citing two stats.
Payment default rates (borrowers failing to pay) are about 1.5%, Bantwal said. That’s relatively low. Non-accrual rates (loans that are not generating interest because the borrower is behind) are about 2%. Again, fairly modest.
“Those are averages. There’s just dispersion around that, so you know we’re fortunate. We’re at 0.2%, so we’re much better than the average,” Bantwal said.
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